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. …

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 …

matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete …

This paper provides a microeconomic model of matching which implies that the standard, reduced form approach, is … misspecified. A simple model is analysed (with help-wanted/employment-needed advertising) where the matching rate depends not only …

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

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 …