In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

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 …

We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on … unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted … for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature …

We extend the standard textbook search and matching model by introducing deep habits in consumption. The cyclical … fluctuations of vacancies and unemployment in our model can replicate those observed in the US data, with labour market tightness … for the new hires and the calibration is consistent with the estimated elasticity of unemployment to unemployment benefits …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …. -- Wage Rigidity ; Search and Matching Model ; Business Cycle …

unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the … recent rise in U.S. unemployment by exploiting two sources of cross-sectional data on vacancies, JOLTS and HWOL, a new … one-third of the total observed increase in the unemployment rate, whereas geographical mismatch plays no apparent role …

empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …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 …

empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …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 …