Looking into the Black Box: A Survey of the Matching Function

Journal of Economic Literature - Tập 39 Số 2 - Trang 390-431 - 2001
Bárbara Petrongolo1, Christopher A. Pissarides2
1University Carlos III, Madrid, Centre for Economic Performance, and CEPR.
2Centre for Economic Performance, London School of Economics and CEPR.

Tóm tắt

This paper surveys the microfoundations, empirical evidence, and estimation issues underlying the aggregate matching function. There is no consensus yet on microfoundations but one is emerging on estimation. An aggregate, constant returns, Cobb-Douglas matching function with hires as a function of vacancies and unemployment has been successfully estimated for several countries. Recent work has utilized disaggregated data to go beyond aggregate estimates, with many refinements and suggestions for future research. The paper discusses spatial aggregation issues, and implications of on-the-job search and of the timing of stocks and flows for estimated matching functions.

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