We revisit the puzzling finding that labour market performance appears to deteriorate, as suggested by negative time trends in empirical matching functions. We investigate whether these trends simply arise from omitted variable bias. Concretely, we consider the omission of job seekers beyond the...

Verbindungen zwischen ähnlichen Subjekten sind ein häufig beobachtetes Phänomen. Damit solche Sortierungen in einem Suchmodell auftreten, müssen oft jedoch überraschend starke Bedingungen erfüllt sein. Diese Studie zeigt, dass ein um Signale erweitertes Suchmodell sogar vollkommene...

This paper develops a large-scale application to improve the labour market matching process with model- and algorithm-based statistical methods. We use comprehensive administrative data on employment biographies covering individual and job-related information of workers in Germany. We estimate...

We consider a random matching model where heterogeneous agents choose optimally to invest time and real resources in education. Generically, there is a steady state equilibrium, where some agents, but not all of them, invest. Regular steady state equilibria are constrained inefficient in a...