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 …

over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic …This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities …

the first year, due to both an increased likelihood of matching to a lower paying firm and a reduced probability of moving … up once matched. Thus our findings can account for some of the lasting negative impacts on workers forced to search for a …

market search model. Absent the reform, unemployment rates would be 50% higher today. …

A matching model in the line of Mortensen and Pissarides (1994) is augmented with a lowskill labor market and firing …

occupations can arise if skill requirements are changing over time, potentially reducing aggregate matching efficiency within the … with an increased demand for software skills. We also find evidence that upskilling contributed to reduced matching … efficiency in certain segments of the US labor market as well as in the aggregate. In particular, matching efficiency was lower …