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 …

occupations can arise if skill requirements are changing over time, potentially reducing aggregate matching efficiency within the … with an increased demand for software skills. We also find evidence that upskilling contributed to reduced matching … efficiency in certain segments of the US labor market as well as in the aggregate. In particular, matching efficiency was lower …

unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies and the … workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and … confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between …

mobility or mobility shocks, we propose a multi-sector business cycle model with on-the-job search and endogenous occupational …