This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses …

underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching … from it, generated by matching. …

A new methodology is described which tests between various equilibrium theories of unemployment using matching data … identify a matching process using data which is recorded monthly, and also shows how to identify different unemployment … employment agency data for the UK over the period 1985-99. Although the standard random matching approach provides a reasonably …

Does the search and matching model fit aggregate US labour market data? While the model has become an important tool of …

employees. This Paper develops a matching model that can explain the link between inter-industry wage differentials and the use … than formal methods (e.g., newspaper ads). In equilibrium, the matching process generates segmentation in the labour market …

We incorporate reference-dependent preferences into a search-and-matching model of the labor market, in which firms …

We study active labor market policies (ALMP) in a matching model. ALMPs are modelled as a subsidy to job search …