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We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited capacity to process information and cannot perfectly identify suitable applicants. During recessions, higher losses from hiring unsuitable workers cause firms to be more...
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"In this paper, we study the initial recruitment of individuals in the political sector. We propose an equilibrium … model of political recruitment by a party who faces competition for political talent from the lobbying sector. We show that …
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