This paper examines implications of incorporating labor market search and matching frictions into a sticky price model … suggest that introducing the search and matching frictions alter determinacy properties of the strictly inflation …

Matching ; Labor Market Frictions ; Structural Estimation ; Efficiency ; Policy Analysis …

paper stresses the role of horizontal differences in worker productivity, as opposed to vertical, assortative matching …

The matching of likes is a frequently observed phenomenon. However, for such assortative matching to arise in a search … can generate even perfect assortative matching under weak conditions: supermodularity of the match production function is … the model achieves nearly unconstrained efficiency despite frictions. -- Assortative matching ; sorting ; search ; signals …

all their candidates) only wage mechanisms that allow for ex post Bertrand competition generate the maximum matching on a …