We examine the implications of worker heterogeneity on the equilibrium matching process, using a directed search model. Worker abilities are selected from a general distribution, subject to some weak regularity requirements, and the firms direct their job offers to workers. We identify...

We examine the implications of worker heterogeneity on the equilibrium matching process, using a directed search model. Worker abilities are selected from a general distribution, subject to some weak regularity requirements, and the firms direct their job offers to workers. For large markets we...

We examine the implications of changes in the skill distribution on the equilibrium matching process and the job finding rate, using a directed search approach. Worker abilities are selected from a distribution while firms face heterogeneous entry costs and direct their job offers to workers. We...

We examine the implications of worker heterogeneity on the equilibrium matching process, using a directed search model. Worker abilities are selected from a general distribution, subject to some weak regularity requirements, and the firms direct their job offers to workers. We identify...

Casual empiricism suggests higher quality is associated with greater variety. However, recent theoretical and empirical research has either not considered this link, or has been unable to establish unambiguous predictions about the relationship between quality and variety. In this paper we...

In existing game theoretic settings the timing of moves is deterministic, i.e. they occur with certainty at a pre-specified time. To add more realism we propose a framework in which, after an initial simultaneous move in time t = 0, one player gets to revise his action with positive probability...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>This article surveys some of the contributions of search theory to understanding labour markets. Search theory assumes that trading does not occur in perfectly competitive markets, but rather that frictions exist in the trading process. By making this...</p>

We use a standard New Keynesian model of a small open economy, extended to include a government sector, to investigate the Great Depression in Australia. A calibrated model with a fixed exchange rate regime, similar to the gold standard, does well in replicating the dynamics of output during the...

In the 1980s there was an increase in cross-sectional wage inequality while simultaneously there was a decrease in the time series volatility of aggregate output. This paper argues that increased efficiency of the labor market may help explain both features of the data. Increases in labor market...

This paper examines the allocation of heterogeneous workers across sectors of an economy in which workers are able to direct their search towards particular firms. We find that search frictions, in addition to causing unemployment, may result in an inefficient allocation of labor. This result...