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 … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

This paper develops a Walrasian equilibrium theory of establishment level dynamics and matching frictions and uses it … to evaluate the effects of congestion externalities in the matching process and determine the government interventions … an important role in dampening the response of the economy to aggregate productivity shocks. -- Firm dynamics ; matching …

elasticity of labor supply. Thus, our results uncover the previously undocumented power of words in the job matching process. …

This paper quantifies the impact of the Hartz reforms on matching efficiency, using monthly SOEP gross worker flows … the outflow rate (job finding) has been steadily increasing. This indicates that matching efficiency has improved … substantially in recent years. Results from an estimated matching function - pointing to efficiency gains of more than 20 …

whether changes in matching frictions can explain the large and persistent increase in Mexican unemployment after the 2008 … global financial crisis. We find evidence of a statistically signicant reduction in the efficiency of the matching function … unemployment rate. Hence, these results suggest that changes in matching frictions cannot explain most of the increase in …

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages …

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages …