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Abstract:

cover
CEP Discussion Paper
Unemployment in the Great Recession
Christopher A. Pissarides
May 2013
Paper No' CEPDP1210:
Full Paper (pdf)

JEL Classification: E24; J6


Tags: unemployment; great recession; vacancies; beveridge curve; construction sector; policies and institutions

This paper studies the responses of unemployment in Germany, the United States and Britain to the Great Recession of 2008-09 by making use of Beveridge curve analysis, and in the entire OECD with other techniques. It is shown that Britain suffered from recession but no structural problems; the United States suffered from structural unemployment during the recovery; Germany exhibited a much better performance both during and after the recession. The rise in OECD unemployment is broken down into parts due to aggregate activity, the construction sector and a residual attributed to policies and institutions, which is used to reach conclusions about policy.