A labor matching model with nominal rigidities can match short-run movements in labor's share with some success …

Can the standard search-and-matching labor market model replicate the business cycle fluctuations of the job finding … matching ; business cycle …

unemployment. Using a standard model, we show that three factors can shift the Beveridge curve: reduced-form matching efficiency … pre-2010 period to the post-2010 period, a fall in matching efficiency and out-of-steady-state dynamics both pushed the … shift in vacancies given unemployment. In previous recessions changes in matching efficiency were relatively unimportant …

-Pissarides matching model fails to replicate this dynamic pattern due to the rapid responses of vacancies. They extend the model by …. In the matching model with sunk costs, vacancies react sluggishly to shocks, leading to highly realistic dynamics …