Cross-section estimation of the matching function: Evidence from England and Wales

This paper analyses how the levels of unemployment and vacancies affect the rate at which unemployed workers find employment - the worker-firm 'matching function'. In particular, we test the robustness of previous empirical work by checking whether we obtain the same estimated function using cross-section data rather than aggregate time series data. We find strong evidence of constant returns to scale which is strikingly similar to previous work.