Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2010
This paper examines the labour market matching process by distinguishing its two component stages: the contact stage … construct a theoretical model explaining two-sided selection through microeconomic incentives. Firms face adjustment costs in … account for important empirical regularities that the conventional matching model cannot. …