I study a dynamic search-matching model with two-sided heterogeneity, a production complementarity that induces labor …. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …

. Consequently, entrant workers have lower job-finding rates and longer unemployment durations than the unemployed who have looked … where firms who match with entrant workers have to incur training costs. As a result, firms are biased against entrant …

) in an occupation and the diversity of tasks in an occupation. We find that the matching efficiency improves with higher … search theoretic model: as the standardization of an occupation increases or the diversity of tasks decreases, search costs … decrease and the optimal search intensity increases. However, the model reveals that higher search intensities can have …

This paper examines how and why returning to education fosters recovery from negative employment shocks among high …

that shows that the search behavior of the employed has profound aggregate implications for the unemployed. There is a … strategic complementarity between active on-the-job search and vacancy posting by firms: active search changes the number of … vacancy posting in turn makes costly on-the-job search more attractive, a self-fulfilling belief. The absence of on …

, and both variables are negatively correlated with the duration of unemployment spells. With search frictions, general … decision of whether to accumulate skills through training or education …This paper analyses the correlation between employment duration, unemployment duration and general skill accumulation …

A quantitative model of two-sided search with ex-ante heterogeneity in both worker and entrepreneurial skills is … of labor policies (and other changes in the economy) on the composition of unemployment and on unemployment duration, as … well as on wage distributions. The effect of introducing a simple unemployment insurance scheme is then twofold. First, it …