To generate big responses of unemployment to productivity changes, researchers have reconfigured matching models in … these redesigned matching models increase responses of unemployment to movements in productivity by diminishing the … introducing costly acquisition of credit, or by positing government mandated unemployment compensation and layoff costs. All of …

This paper uses the search and matching framework to explore the impact of employed job search on the labour market …-to-job flows and labour force entries and exits. Employed job search is shown to have a substantial impact on unemployment dynamics … but a negligible one on the level of unemployment. More on-the-job search leads to lower unemployment inflow and outflow …

unemployment has a weak positive effect on the probability of filling a vacancy, while the number of vacancies in the local labor … the number of unemployed are not very important. Matching frictions are more important for employment during booms than …

Economic growth and unemployment exhibit an ambiguous relationship – according to empirical studies. This ambiguity can …, unemployment may be absorbed by underground firms, which adopt backward technology, at the cost of reduced economic growth …. Alternatively, unemployment diminishes because productivity grows by employing workers who prefer to become skilled, and thus not to …

economy. We consider a dynamic matching-model with a declining and an emerging competitive sector. We show that there are two … with a small one. Surprisingly, the end of transition is also characterized by lower unemployment when there are massive … layoffs - because in the short run, the high unemployment implied by the massive decrease makes job creation in the …

A matching model will explain both unemployment and economic growth by considering the underground sector and human … ambiguous relationships between underground employment and unemployment, and (iii) between growth and unemployment. Key … low, underground employment alleviates unemployment, but the economy grows at lower rates. …

employees. This paper develops a matching model that can explain the link between inter-industry wage differentials and use of … formal methods (e.g., newspaper ads). In equilibrium, the matching process generates segmentation in the labor market because …