In a reasonably calibrated Mortensen and Pissarides matching model, shocks to average labor productivity can account … for only a small portion of the fluctuations in unemployment and vacancies (Shimer (2005a)). In this paper, the author … vintages of entrants are able to account for fluctuations in unemployment and vacancies and that, in this environment, specific …

This paper is concerned with the business cycle dynamics in search-and-matching models of the labor market when agents … volatility of vacancies and unemployment. This channel can be relevant if the lack of insurance is large enough so that the … earnings variance and persistence in the unemployment state that result in a large degree of self-insurance …

) characterize responses of unemployment to productivity changes for a general matching technology; and (3) show how a matching … to fill vacancies, but search frictions prevent firms from instantly hiring available workers. Unemployment persists … unemployment responds to productivity changes depends on resources that can be allocated to job creation. Yet, this …

-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We use data on the cost of vacancy creation …

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

Standard search and matching models of equilibrium unemployment, once properly calibrated, can generate only a small … (reservation) wage paid. We show that in a large class of search and matching models this statistic (the mean-min ratio") can be …