Publication
Apr 2009
This paper presents a theory explaining the labor market matching process through microeconomic incentives. The authors describe matches and separations on the market through a firm's job offer and firing decisions and a worker's job acceptance and quitting decisions. According to the authors this approach obviates the need for a matching function. They calibrate their incentive model for the US economy and show that it can account for some important empirical regularities that the conventional matching model cannot.
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English (PDF, 28 pages, 295 KB) |
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Author | Alessio J G Brown, Christian Merkl, Dennis J Snower |
Series | Kiel Institute Working Papers |
Issue | 1512 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |