in The Review of Economic Studies
January 2004; p ublished online January 2004 .
Journal Article. Subjects: Particular Labour Markets; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Mobility, Unemployment, and Vacancies. 12955 words.
Standard models of employment fluctuations cannot reconcile the unemployment rate's remarkable persistence with the high job-finding rates found in worker flows data. A matching model...