Blockchain innovation in promoting employment

This paper develops a neat Diamond–Mortensen–Pissarides search-and-matching model that studies how blockchain-related primitives affect labour-market outcomes. Adoption raises the effective matching parameter A(η) subject to private R&D cost η. We map smart contracts, verifiable identity, provenance, and settlement rails to DMP primitives (matching efficiency, vacancy costs, separations). Comparative statics reveal a cost threshold: modest η lowers unemployment via higher match success, while large η can reverse gains. We show analytically that firm-side tax relief restores adoption incentives and reduces unemployment. Finally, we discuss policy feasibility and outline a brief semi-empirical plan for calibration.