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 …

We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs … rate of 4-6%. We find that without search frictions, output would be between 7.5% and 18.5% higher, depending on whether or …

vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and …

frictions and unemployment insurance, when the latter is only imperfectly related to search effort. A balanced social insurance … volatility and persistence of vacancies and unemployment. …

equilibrium search model using reduced-form minimum wage elasticities identified from border discontinuities and fitted with … those with low tenure. Our estimated parameters of a search model with wage posting and heterogeneous workers and firms …

apply at a stochastic number of suitable vacancies. Equilibrium is not constrained efficient; entry is excessive and search …This paper analyzes an urn-ball matching model in which workers decide how intensively they sample job openings and … adverse labor market conditions. Unlike existing coordination-friction economies with fixed search intensity, the model can …