A large part of the literature on frictional matching in the labor market assumes bilateral meetings between workers …

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 …

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 …

of random matching. Workers react to UI policy through job acceptance decisions; firms react to UI policy through wage … posting. There is endogenous assortative matching as a result of the fact that UI policy induces a time profile for … reservation wages, shifting the labor force towards the more productive firms. The relation between productivity dispersion and UI …

This paper evaluates the implications for employment, productivity and wages of allowing for more flexibility in weekly … conditions, by expanding or contracting the working week. -- Workweek ; wages ; employment ; productivity …