I study a dynamic search-matching model with two-sided heterogeneity, a production complementarity that induces labor … market sorting, and aggregate shocks. In response to a positive productivity shock, incentives to sort increase ….S. labor market data and produces realistic degrees of wage dispersion and labor market sorting. …

make investments before matching in a competitive market. We introduce the notion of premune-ation values—the values to the …

How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi …

How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi …

heterogeneity or unobserved state variables and panel data models with fixed effects. Recent developments in measurement error …

heterogeneity or unobserved state variables and panel data models with fixed effects. Recent developments in measurement error …

resides in between the random matching and the directed search outcomes. The equilibrium that emerges from this middle ground … is inefficient relative to the constrained Pareto allocation. Our theory encompasses the outcomes of the random matching …

Matching markets can be unstable when individuals prefer to be matched to a partner who also wants to be matched with … preferences exist, significantly decrease stability in matching markets, and are driven both by belief-based and preference …