Michaillat, Pascal - Centre for Economic Performance, LSE - 2012
This article is based on a paper that models unemployment as the result of matching frictions and job rationing. Job … matching frictions contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack …, recruiting is easy and inexpensive, so matching frictions do not matter much. In a calibrated model, cyclical fluctuations in the …