UnemploymentOption valueIn search-and-matching models, the nonlinear nature of search frictions increases average unemployment rates during periods with higher volatility. These frictions are not, however, by t
UnemploymentSearch-matching modelOn-the-job searchThis paper studies the impact of long-run productivity growth on job finding and separation rates, and thus the unemployment rate, using a search and matching model. We incorporate disembodied technological progress and on-the-job search into the ...
Unemployment, as it is conventionally defined, is a measure of full-time job search. Individuals generally have the option of allocating their time across many competing uses. It follows that an economic interpretation of unemployment data requires a theory that explains the circumstances in which pe...
In general, the literature evaluates the performance of structural economic models, such as those in the search and matching literature, in two ways. The most common way considers the in-sample fit of the model relative to the moments used in the calibration or estimation. In many cases, the...
We demonstrate the empirical relevance of the proposed method by studying the Mortensen-Pissarides search and matching model for equilibrium unemployment, and shed new light on the unemployment volatility puzzle from an econometric perspective.doi:10.2139/ssrn.3198230Jia Li†...
2 Typically, the model exhibits inefficient equilibria, as the search externality built into the matching process fails to be internalized through ex-post bargaining.3 In the directed search model, first a continuum of companies post wages and then a continuum of workers direct their search to ...
unemploymentIn this article, we study the importance of product market demand and search frictions for hiring. We use a search-matching model with imperfect competition in the product market to derive an equation for total hiring in a local labour market, and estimate it on Swedish panel data....
Distributional effects are modest.;The second essay (co-authored with James Albrecht and Susan Vroman) studies the interactions between private and public-sector labor markets by extending the standard Diamond-Mortensen-Pissarides model of equilibrium unemployment to incorporate public-sector employment. ...
(1984). An equilibrium model of search unemployment. Journal of Political Economy 92, 824–840. Article Google Scholar Arntz, M. (2005). The geographical mobility of unemployed workers: Evidence from West Germany. ZEW discussion paper, No. 05–34. Google Scholar Bender, S., Haas, A., ...
behaviour towards the unemployed. As a result, we have ample empirical evidence regarding the demand side of the matching process but not so much on the supply side. This empirical one-sidedness can leave the impression that the targets of unemployment stigma are only passive victims of potential...