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Empirical Matching Functions: Estimation and Interpretation Using State-Level Data

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Patricia M. Anderson
Simon M. Burgess

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Abstract

Using quarterly data to estimate state-level matching functions, we obtain point estimates that are slightly higher than are found with national gross flows data, likely because of inherent differences in the data sources. We also estimate matching functions separately by the source of the new hire, and show that the results are consistent with the assumptions of endogenous job search by the employed and a preference for employed applicants by firms. Thus, care must be taken in interpreting empirical matching functions, which are likely a reduced-form combination of a structural matching function and a job competition model. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 82 (2000)
Issue (Month): 1 (February)
Pages: 93-102
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Handle: RePEc:tpr:restat:v:82:y:2000:i:1:p:93-102

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  1. Nicola Giammarioli, 2003. "Indeterminacy and search theory," Working Paper Series 271, European Central Bank. [Downloadable!]
  2. Bruce C. Fallick & Charles A. Fleischman, 2001. "The importance of employer-to-employer flows in the U.S. labor market," Finance and Economics Discussion Series 2001-18, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  3. Marcus Berliant & Robert R. Reed III & Ping Wang, 2004. "Knowledge Exchange, Matching, and Agglomeration," Urban/Regional 0405007, EconWPA, revised 03 Dec 2004. [Downloadable!]
    Other versions:
  4. Sanna-Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2006. "Regional Matching Frictions and Aggregate Unemployment," ERSA conference papers ersa06p416, European Regional Science Association. [Downloadable!]
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  5. Sanna-Mari Hynninen, 2005. "Labour market status of job seekers in regional matching processes," ERSA conference papers ersa05p499, European Regional Science Association. [Downloadable!]
  6. Fahr, René & Sunde, Uwe, 2001. "Disaggregate Matching Functions," IZA Discussion Papers 335, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Fahr, René & Sunde, Uwe, 2001. "Strategic Hiring Behavior in Empirical Matching Functions," IZA Discussion Papers 320, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Robert G. Valletta, 2005. "Why has the U.S. Beveridge curve shifted back? new evidence using regional data," Working Paper Series 2005-25, Federal Reserve Bank of San Francisco. [Downloadable!]
  9. Aomar Ibourk & Bénédicte Maillard & Sergio Perelman & Henri Sneessens, 2004. "Aggregate Matching Efficiency: A Stochastic Production Frontier Approach, France 1990–1994," Empirica, Springer, vol. 31(1), pages 1-25, March. [Downloadable!] (restricted)
  10. Karsten Albæk & Henrik Hansen, . "The Rise in Danish Unemployment: Reallocation or Mismatch?," CAM Working Papers 2004-13, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
    Other versions:
  11. Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  12. Ziesemer,Thomas, 2002. "ICT as Technical Change in the Matching and Production Functions of a Pissarides-Dixit-Stiglitz model," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  13. Heidi Soininen, 2007. "Finnish Evidence of Changes in Labor Market Matching," Finnish Economic Papers, Finnish Economic Association, vol. 20(1), pages 57-71, Spring. [Downloadable!]
  14. Galindo-Rueda, Fernando, 2002. "Endogenous Wage and Capital Dispersion, On-the-Job Search and the Matching Technology," IZA Discussion Papers 625, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Sunde, Uwe, 2002. "Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies," IZA Discussion Papers 520, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Sunde, Uwe & Fahr, René, 2002. "Employment Status, Endogenous Regional Mobility, and Spatial Dependencies in Labor Markets," IZA Discussion Papers 521, Institute for the Study of Labor (IZA). [Downloadable!]
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