Reasonably calibrated versions of the Diamond-Mortensen-Pissarides search and matching model of unemployment … underpredict, by a wide margin, the volatility of vacancies, unemployment, and the vacancies-unemployment ratio - variables at the … are determined via competitive search (wage posting by firms along with directed search on the part of workers) rather …

these fluctuations very close to those seen in the data. The search cost function and the matching technology are intimately … elasticity of matches with respect to vacancies. Evidence in support of the model's prediction of procyclical search effort is … that are an order of magnitude too small. Introducing search effort of the unemployed brings the model's predictions for …

fluctuations and the size of rents to employment. Introducing endogenous job search effort reduces the strength of the trade …-off while bringing the model closer to the data. Ignoring worker search effort leads to a large upward bias in the elasticity of … matches with respect to vacancies. Merging the American Time Use Survey and the Current Population Survey, new evidence in …