. Moreover, it is shown that the neglect of endogenous but not observable behavior in the empirical literature on labor matching … leads to systematically biased estimates of the matching elasticities, posing a caveat on the results of previous studies … testing for constant returns of the matching function. The theoretical model presented allows to predict the direction of the …

provide a framework with microeconomic foundations that give rise to matching frictions, which can be used to understand the … indeed, more frequently used aggregate matching technology. Existing differences turn out to be crucial for the empirical …

We consider general two-sided matching markets, so-called matching with contracts markets as introduced by Hatfield and … Milgrom (2005), and analyze (Maskin) monotonic and Nash implementable solutions. We show that for matching with contracts … stable correspondence is the minimal solution that is Pareto efficient, individually rational, and implementable. -- Matching …