This paper shows that a search and matching model with idiosyncratic training cost shocks can explain the asymmetric … movement of the job-finding rate over the business cycle and the decline of matching efficiency in recessions. Large negative … tightness. Our model explains a large fraction of the matching efficiency decline during the Great Recession and generates state …

-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. …

In a reasonably calibrated Mortensen and Pissarides matching model, shocks to average labor productivity can account …

characterization has been made when matching is parameterized by a Cobb--Douglas technology. For a canonical DMP model, I (1 …) characterize responses of unemployment to productivity changes for a general matching technology; and (3) show how a matching …

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities … over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic …

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities … over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic …

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities … over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …