This paper takes a discrete-time adaptation of the continuous-time matching economy of Pissarides (1990, 2001) discussed in Ljungqvist and Sargent (2000) and computes the solution to the dynamic planning problem. The solution is shown to be completely characterized by a first-order, non-linear...

We present new evidence on how employment growth varies across firm types (size, productivity, and wage) and over the business cycle using Danish data covering almost 30 years. We decompose net employment growth into two recruitment margins: net hirings from/to employment (poaching) and net...

Labor market search with two-sided heterogeneity : hierarchical versus circular models / Aico van Vuuren -- The weak Pareto law in Burdett-Mortensen equilibrium search models / Gerard J. van den Berg -- Competitive auctions : theory and application / John Kennes -- Bargaining, on-the-job search...