Revisiting the matching function

Arbeitspapier

Many labor market models use both idiosyncratic productivity and a vacancy free entry condition. This paper shows that these two features combined generate an equilibrium comovement between matches on the one hand and unemployment and vacancies on the other hand, which is observationally equivalent to a constant return Cobb-Douglas function commonly used to 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 formation. In this case, they are not suitable for the calibration of labor market models.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IAB-Discussion Paper ; No. 5/2014

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search
• Thema: matching function ; idiosyncratic productivity ; job creation ; vacancies

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kohlbrecher, Britta ; Merkl, Christian ; Nordmeier, Daniela
• Ereignis: Veröffentlichung
• (wer): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (wo): Nürnberg
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/103053
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ