This paper investigates the role of worker-firm matching algorithms in accounting for early job separation rates. For this purpose, we examine Korea’s temporary foreign worker program in which the government classifies firms by priority levels and matches them with foreign workers based on...

This paper investigates the role of worker-firm matching algorithms in accounting for early job separation rates. For this purpose, we examine Korea's temporary foreign worker program in which the government classifies firms by priority levels and matches them with foreign workers based on their...

Markets sometimes unravel, with offers becoming inefficiently early. Often this is attributed to competition arising from an imbalance of demand and supply, typically excess demand for workers. However this presents a puzzle, since unraveling can only occur when firms are willing to make early...

We study a simple model of a decentralized market game in which firms make directed offers to workers. We focus on markets in which agents have aligned preferences. When agents have complete information or when there are no frictions in the economy, there exists an equilibrium that yields the...