00979pab a2200133 454500008004000000100001900040245001300059260000900072300001600081362000800097520069300105650001800798773002900816180718b2007   xxu||||| |||| 00| 0 eng d  aShimer, Robert  aMismatch  c2007  ap.1074-101.  aSep  aThis paper develops a dynamic model of mismatch. Workers and jobs are randomly allocated to labor markets. Each market clears, but some have excess (unemployed) workers and some have excess (vacant) jobs. As workers and jobs switch markets, unemployed workers find vacancies and employed workers become unemployed. The model is quantitatively consistent with the business cycle frequency comovement of unemployment, vacancies, and the job finding rate and explains much of these variables' volatility. It can also address cyclicality in the separation rate into unemployment and duration dependence in the job finding rate. The results are robust to some nonrandom mobility. - Reproduced.  aLabour market  aAmerican Economic Review