I introduce a stability notion, dynamic , for two‐sided matching markets where (i) opportunities arrive over time, (ii) is one‐to‐one, and (iii) irreversible. The definition addresses two conceptual issues. First, since not all agents are available to match at the same one must establish which allowed form blocking pairs. Second, exhibit of externality that present in static markets: an agent's...

Abstract Using administrative German data, we show that large cities allow for a more efficient matching between workers and firms this has important consequences geographical inequality. Specifically, the match high-quality plants is significantly tighter in relative to small cities. Wages are higher not only because of worker quality but also stronger assortative matching. Strong magnifies wa...