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In a rapidly changing economy, the value of different jobs (worker-firm matches) changes over time. To function efficiently, the labor market needs to be able to accommodate such changes. For this discussion, we will think about efficiency as simply being measured by the productivity of the match between workers and firms. In an efficient match, the worker is productive at the chosen job. For the overall economy, if all matches are efficient, then it is not possible to change the assignment of workers to jobs and produce more output.
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