Unemployment and job search
Persistent unemployment imposes economic and social hardships on jobseekers and their families, and is also costly for employers and governments.
CEP's seminal contributions to the modelling of search frictions in labour markets, for which Christopher Pissarides was awarded the Nobel Prize, set the scene for much of the macro-labour literature on understanding how different labour market policies can shape the equilibrium level of unemployment and was followed by empirical studies of matching functions.
Richard Layard, Steve Nickell and Richard Jackman's foundational work on the role of labour market institutions in shaping the level of unemployment has also been instrumental in shifting the way the UK's labour markets and subsequently those of most European countries operate. Their work on the effective supply of labour as the main underlying determinant of employment has influenced the adoption of New Deal type policies in the UK and Europe.
More recent work on unemployment has examined the role of local labour markets in shaping job search and why unemployment persists in particular local labour markets in the UK and the US. The CEP has also studied unemployment in the Great Recession and whether modern technology plays a role in jobless recoveries.
Unemployment: Macroeconomic Performance And The Labour Market
Richard Layard, Stephen Nickell and Richard Jackman provide a basis for a better unemployment policy: showing how the lessons learned from experience and theory can be applied to greatly reduce the waste and misery of high unemployment. Read more...
Job Creation And Job Destruction In The Theory Of Unemployment
Dale T. Mortensen and Christopher A. Pissarides model a job-specific shock process in the matching model of unemployment with non-cooperative wage behaviour and show that an aggregate shock process proxies reasonably well the cyclical behaviour of job creation and job destruction in the United States. Read more...
Unemployment and job search publications
Michael Amior and Alan Manning
1 July 2018
Alan Manning and Barbara Petrongolo
1 October 2017
Georg Graetz and Guy Michaels
1 May 2017
Christopher A. Pissarides
1 July 2013
Richard Layard and Stephen J. Nickell; Edited by Werner Eichhorst and Klaus F. Zimmermann
1 May 2011
Richard Layard, Stephen Nickell and Richard Jackman
1 August 2005
Richard Blundell, Monica Costa Dias, Costas Meghir and John Van Reenen
1 June 2004
Dale T. Mortensen and Christopher A. Pissarides
1 July 1994