Propensity score matching provides an estimate of the effect of a 'treatment' variable on an outcome variable that is … largely free of bias arising from an association between treatment status and observable variables. However, matching methods … undermine the conclusions about causal effects from a matching analysis. Instrumental variables (IV) estimation provides an …

using matching methods. Because precise estimation of the expected counterfactual is particularly important in regions …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … labor force and rises the share of attached workers. Finally, our theory suggests that contrary to two-state models …