We show that equilibrium matching models imply that standard estimates of the matching function elasticities are exposed to an endogeneity bias, which arises from the search behavior of agents on either side of the market. We offer an estimation method which, under certain assumptions, is immune...

We consider the problem of measuring transition probabilities across employment, unemployment and inactivity when longitudinal data is not available and/or the available retrospective data is measured with error. We establish nonparametric point-identification conditions based on time series of...

Although the size of the labor force is nearly acyclical, worker flows between employment and unemployment on the one hand and inactivity on the other hand fluctuate significantly over the business cycle. After reviewing these facts, this paper lays out a job-search model to uncover the...

We study the effects of front-loading the payment of unemployment benefits in an equilibrium matching framework with precautionary savings. Front-loading the benefit system trades off fewer means to smooth consumption at long unemployment durations for improved insurance upon job loss. In the...