Labour Markets Performance

Why is the rate of unemployment so high, and the participation in the labour force so low in some countries relative to others? What are the major determinants of fluctuations in unemployment and employment over time? What are the effects of labour- and product-market policies on labour demand by firms and labour supply by workers? Virtually all contemporary academic research on these issues is based on the analytical framework of the Mortensen-Pissarides model, co-developed at the LSE by CEP macro program member Christopher Pissarides.

The CEP macro program remains at the forefront of this research, as the following highlights demonstrate:

• The Future of Work in Europe
  
  
• The Minimum Wage and Inequality
  
  
• Tax and Welfare Policy and Labour-Market Performance
  
  
• Do Matching Frictions Cause Unemployment? Not in Bad Times
  
  
• The Macroeconomic Role of Unemployment Compensation
  
  
• Unemployment Insurance and Cultural Transmission
  
  
• Responding to the Shimer Puzzle
  
  
• Monopolistic Employers and Unionized Employees: An Unholy Alliance