Extensions of the Basic Matching Model

Abstract

So far, we assumed in our analysis of the matching process that

• firstly, the contact probability c, which is the probability that a job seeker will find at least one particular unfilled vacancy, is a function of unemployment and vacancies only and

• secondly, the acceptance probability r, which is the conditional probability that a match is formed if a contact between a job seeker and a vacancy takes place, is exogenously given.