We analyze the implications of multiple applications by job seekers for the microfoundations of the matching function. We emphasize a coordination failure caused by multiple applications, namely, that firms can waste resources processing applicants who are ultimately hired elsewhere.

In many economies, there is substantial economic activity in the informal sector, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal sector, can have important spillover effects on the informal sector. The relative sizes of the informal and...

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation. The reason is that the marginal worker does not internalize the effect of his or her...

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation. The reason is that the marginal worker does not internalize the effect of his or her...

In many economies, there is substantial economic activity in the informal sector, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal sector, can have important spillover effects on the informal sector. The relative sizes of the informal and...

In many economies, there is substantial economic activity in the informal labor market, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal-sector can have important spillover effects on the informal sector. The relative sizes of the...

We construct a bilateral search model of the housing market in which agents differ in their flow rewards while searching. Buyers and sellers enter the market with high flow rewards, but move at a Poisson rate to a state with low flow rewards if they do not transact in the meantime. We...

We analyze the implications of multiple applications by job seekers for the microfoundations of the matching function. We emphasize a coordination failure caused by multiple applications, namely, that firms can waste resources processing applicants who are ultimately hired elsewhere.

This paper shows that we can normalize job and worker characteristics so that, without frictions,there exists a linear relationship between wages on the one hand and worker and job type indiceson the other. However, for five European countries and the United States we find strong evidencefor a...

Do people move to cities because of marriage market considerations? In citiessingles can meet more potential partners than in rural areas. Singles are thereforeprepared to pay a premium in terms of higher housing prices. Once married, themarriage market benefits disappear while the housing...