This paper examines the labour market matching process by distinguishing its two component stages: the contact stage … account for important empirical regularities that the conventional matching model cannot. …

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 …

search and matching frictions and incorporate a US unemployment insurance experience rating system. Layoff taxes based on … helps realign the search and matching model with the empirical properties of its most salient variables. The model …

This paper contributes to the debate concerning the micro-foundation of matching functions in frictional labor markets …. The focus is on a particular matching regime, i.e., the so-called urn-ball process. It is shown that in a two … shocks may change the form of the matching function. This result casts additional doubts on the assumption of exogenous …

model match formation. We use German administrative labor market data to show that the matching function correlation solely … based on idiosyncratic productivity and free entry is very close to the empirical matching function. Consequently, we argue … that standard matching function estimations are seriously biased if idiosyncratic productivity plays a role for match …