model match formation. We use German administrative labor market data to show that the matching function correlation solely … 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 …

matching function. We interpret parameter changes of the matching function during the business cycle, distinguishing cyclical …

matching. JEL Classifications: E24, E32, J63, J64 Keywords: business cycle, job search, matching function, Phillips …  or  locational  imperfections.  It  is  formalized by a ‘matching function’ that takes searching workers and vacant  jobs … are determined by a firm optimality equation, equating vacancy  costs and benefits at the margin.   As can be seen in the equations above, the matching function plays a  crucial  role  in …

uncover the effectiveness at which workers are matched to available jobs. A spatially augmented matching function is backed by …

subsidies. Furthermore, the outflow rate would have been downward-biased had one supposed a matching function that is exogenous …

We show that equilibrium matching models imply that standard estimates of the matching function elasticities are … from that bias. Application of our method to the estimation of a basic version of the matching function using aggregate U …