Can informational frictions serve to amplify the real effects generated by other sources of nominal rigidity? We attempt to answer this question by augmenting an incomplete information model by adding different forms of nominal stickiness. We investigate the implications of different assumptions...

I introduce dispersed information in a search and matching model of the labor market, where firms are hit by aggregate and idiosyncratic productivity shocks. The latter induce larger responses in recruiting activity than the former - because aggregate shocks have general equilibrium effects...