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Evaluating the Performance of the Search and Matching Model Author info | Abstract | Publisher info | Download info | Related research | Statistics Eran Yashiv
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Does the search and matching model fit aggregate U.S. labor market data? While the modelhas become an important tool of macroeconomic analysis, recent literature pointed to somefailures in accounting for the data. This paper aims to answer two questions: (i) Does themodel fit the data, and, if so, on what dimensions? (ii) Does the data "fit" the model, i.e. whatare the data which are relevant to be explained by the model? The analysis shows that themodel does fit certain specifications of the data on many dimensions, though not on all. Thisincludes capturing the high persistence and high volatility of most of the key variables, aswell as the negative co-variation of unemployment and vacancies. It offers a workable,empirically-grounded version of the model for the analysis of aggregate U.S. labor marketdynamics. The paper provides macroeconomists guidance concerning the relevant "buildingblock" for modelling the labor market, both in terms of the model and in terms of the data.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0677.
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Date of creation: Feb 2005Date of revision:
Handle: RePEc:cep:cepdps:dp0677Contact details of provider: Web page: http://cep.lse.ac.uk/pubs/
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Keywords: search matching U.S. labor market vacancies labor market flows business cycles. Other versions of this item:
Find related papers by JEL classification: E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
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CEP Discussion Papers
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Eran Yashiv, 2006.
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IZA Discussion Papers
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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Eran Yashiv, 2006.
"Evaluating the Performance of the Search and Matching Model ,"
IZA Discussion Papers
1931, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Eran Yashiv, 2005.
"Evaluating the Performance of the Search and Matching Model ,"
CEP Discussion Papers
dp0677, Centre for Economic Performance, LSE.
[Downloadable!] Yashiv, Eran, 2006.
"Evaluating the performance of the search and matching model ,"
European Economic Review ,
Elsevier, vol. 50(4), pages 909-936, May.
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