A large part of the literature on frictional matching in the labor market assumes bilateral meetings between workers …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

of random matching. Workers react to UI policy through job acceptance decisions; firms react to UI policy through wage … posting. There is endogenous assortative matching as a result of the fact that UI policy induces a time profile for … reservation wages, shifting the labor force towards the more productive firms. The relation between productivity dispersion and UI …

After a decade in which wages and employment fell precipitously in low-skill occupations and expanded in high … accounted for by a single proximate cause - rising employment and wages in low-education, in-person service occupations. We … automation. We find that in labor markets that were initially specialized in routine-intensive occupations, employment and wages …

to that of the French economy. We then develop a multi-sectorial search and matching model with endogenous occupational …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages … labor force and rises the share of attached workers. Finally, our theory suggests that contrary to two-state models …