We examine the implications of changes in the skill distribution on the equilibrium matching process and the job finding rate, using a directed search approach. Worker abilities are selected from a distribution while firms face heterogeneous entry costs and direct their job offers to workers. We...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>This article surveys some of the contributions of search theory to understanding labour markets. Search theory assumes that trading does not occur in perfectly competitive markets, but rather that frictions exist in the trading process. By making this...</p>