In this article, we investigate the role of several types of educational mismatch in explaining labour market transitions of workers with secondary and higher education. We focus on transitions from employment to unemployment and on job changes, to assess whether mismatch is a temporary or a...

This paper estimates annual data on educational attainment for 3,076 mainland U.S. counties 1991-2005. Being estimated without resorting to ancillary information, this data is suited particular well for panel regression analyses. Several plausibility checks indicate that the data is fairly...

A labor matching model with nominal rigidities can match short-run movements in labor's share with some success. However, it cannot explain much of the behavior of employment, vacancies, and job flows in postwar US data without resorting to additional shocks beyond monetary policy and...

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...

The paper is about the economically efficient design of financial transfers to the unemployed in a highly industrialized country. There have been quite a few contributions to this problem — for example by Beenstock/Brasse, Feldstein/ Altman, Grubel, Orzag/Snower — which are presented and...

Comparing the unemployment insurance systems of the United States and of the United Kingdom it is shown that the US unemployment insurance (UI) is the only system that provides for a negative feedback between UI expenditures and layoffs (“experience rating”). The UK has no specific UI:...

This paper investigates the role of staggered wages and sticky prices in explaining stylized labor market facts. We build on a partial equilibrium search and matching model and expand the model to a general equilibrium model with sticky prices and/or staggered wages. We show that the core model...

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these variations. Matches and separations are described...

Endogenous separation matching models have the shortcoming that they are barely able to replicate the Beveridge curve (i.e. the negative correlation between unemployment and vacancies) and business cycle statistics jointly. This paper builds upon the sectoral shock literature and combines its...