Does the search and matching model fit aggregate U.S. labor market data? While the model has become an important tool …

of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which … achieve efficiency in a labour market characterized by search externalities. …

not; the existence of search externalities makes the retirement age of unemployed workers intrinsically suboptimal …

results: i) the expected dynamics of consumers’ search forgoods, itself depending on the income redistributed by firms and the …

This chapter assesses how models with search frictions have shaped our understanding of aggregatelabor market outcomes … market outcomes for a large set of OECD countries. We thenask how models with search improve our understanding of these data …. Our results are mixed. Searchmodels are useful for interpreting the behavior of some additional data series, but search …