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 …

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 …

and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an … efficiency wage model, we find that there is no Todaro paradox while this is not always true in a search-matching model since a … decrease in the urban unemployment benefit can increase both urban employment and unemployment. -- efficiency wages ; search-matching …

We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex …

and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an … efficiency wage model, we find that there is no Todaro paradox while this is not always true in a search-matching model since a …

We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex …