Kohlbrecher, Britta; Merkl, Christian; Nordmeier, Daniela - 2014
Many labor market models use both idiosyncratic productivity and a vacancy free entry condition. This paper shows that … based on idiosyncratic productivity and free entry is very close to the empirical matching function. Consequently, we argue … that standard matching function estimations are seriously biased if idiosyncratic productivity plays a role for match …