Acharya, Sushant; Wee, Shu Lin - 2019
We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited …-cyclical acceptance rates drive a wedge between meeting and hiring rates, explaining fluctuations in matching efficiency. Quantitatively …, our model replicates the joint behavior of unemployment rates and matching efficiency observed since the Great Recession. …