In this paper, we analyze the matching process taking place in the National Employment Agency (INEM). This institution is a clear example of a market where employment in each period matches the inflow of new job seekers and vacancies with the corresponding stocks at the beginning of the month. These matching dynamics constitute the basis of the so-called stock-flow matching model. To test the stock-flow matching model against the random matching model, we employ several specifications of the matching function over the period 1978:01-2005:04, thereby taking into account the temporal aggregation bias. Prior to estimation, we carried out an intervention analysis on the series employed. The results obtained are robust over time and geographical dimensions and very close to the case of stock-flow matching with job queues. These results call for active labour market policies.

Key words: Spanish labour market, National Employment Agency (INEM), matching function.
JEL Classification: J63, J64.