Labor market matching with application to Finnish data

2014

This thesis studies labor market matching and takes use of a matching function, which describes the technology how unemployed job seekers and vacant jobs search, meet and form new employment relationships. The goal of the study is twofold: First is to provide a comprehensive critical review of previous literature covering both micro models as well as empirical applications. Major limitations in empirical studies are imperfect measures of variables as well as inability to account for all relevant factors making results methodology-sensitive. The second contribution is to estimate a matching function for Finland using annual data from 2006-2012 and thus giving the most recent knowledge on the…