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 …

) 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 …

demand and reduced working hours so as to stabilize workers’ income. In a matching framework such an arrangement increases … labor demand. Tightening eligibility to short-time work benefits tends to reduce the wage while the impact on unemployment …

Shimer (2005a) argues that the Mortensen-Pissarides equilibrium search model of unemployment explains only about 10% of …

employees. This paper develops a matching model that can explain the link between inter-industry wage differentials and use of … formal methods (e.g., newspaper ads). In equilibrium, the matching process generates segmentation in the labor market because …

to the explanation of differences in unemployment rates in industrialized countries. The search and matching model is …The purpose of this chapter is twofold. First, it reviews the model of search and matching equilibrium and derives the … properties of employment and unemployment equilibrium. Second, it applies the model to the study of employment fluctuations and …

, that frictions (sand-in-the-wheels) may decrease unemployment and that the equilibrium is determined by two simple …

persistent unemployment level, and wages stickiness. On the aggregate level, we observe a self-enforcing process of real income … processes governing the labor market, such as job search by individuals, and matching and bargaining among firms and potential …

-Mortensen-Pissarides (DMP) search and matching model. Ex-ante heterogeneity and sorting have important implications for the dynamic properties … market. Additionally, endogenous matching sets fluctuate in response to shocks and amplify job-creation. Using a standard …, the firms' matching sets are wider in equilibrium than the workers' matching sets and fluctuate more in response to shocks. …