This paper shows that a search and matching model with idiosyncratic training cost shocks can explain the asymmetric … movement of the job-finding rate over the business cycle and the decline of matching efficiency in recessions. Large negative … tightness. Our model explains a large fraction of the matching efficiency decline during the Great Recession and generates state …

average unemployment rate.In our setup, employment grows gradually in booms, due to matching frictions, whereas the onset of a …

wage loss. Collectively, the sorting and matching channels explain almost all of the Hartz reforms' effect on post …

This paper contributes to the debate concerning the micro-foundation of matching functions in frictional labor markets …. The focus is on a particular matching regime, i.e., the so-called urn-ball process. It is shown that in a two … shocks may change the form of the matching function. This result casts additional doubts on the assumption of exogenous …

The labor search and matching model plays a growing role in macroeconomic analysis. This paper provides a critical …

This paper considers a matching model with heterogenous jobs (unskilled and skilled) and workers (low and high …

This paper tests whether aggregate matching is consistent with unemployment being mainly due to search frictions or due … to job queues. Using U.K. data and correcting for temporal aggregation bias, estimates of the random matching function … are consistent with previous work in this field, but random matching is formally rejected by the data. The data instead …