In this paper, we show how time-varying unemployment benefits can generate equilibrium wage dispersion in an economy in … which identical firms post wages and homogeneous workers search for acceptable offers. We allow for matching frictions and … for free entry and exit of vacancies, and we model time-varying unemployment benefits in a simple and natural way. We …

benefits granted for a limited amount of time starting from the beginning of the unemployment spell, coupled with social …

In this paper, we show how time-varying unemployment benefits can generate equilibrium wage dispersion in an economy in … which identical firms post wages and homogenous workers search for acceptable offers. We allow for matching frictions and … for free entry and exit of vacancies, and we model time-varying unemployment benefits in a simple and natural way. We …

. Moreover, it is shown that the neglect of endogenous but not observable behavior in the empirical literature on labor matching … leads to systematically biased estimates of the matching elasticities, posing a caveat on the results of previous studies … testing for constant returns of the matching function. The theoretical model presented allows to predict the direction of the …

. Moreover, it is shown that the neglect of endogenous but not observable behavior in the empirical literature on labor matching … leads to systematically biased estimates of the matching elasticities, posing a caveat on the results of previous studies … testing for constant returns of the matching function. The theoretical model presented allows to predict the direction of the …

matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model … model as it is in the data. We show with a simple analytical calculation that in the standard job matching model, one cannot …