Lisi, Gaetano (2013): The Benchmark Macroeconomic Models of the Labour Market. Published in: International Journal of Economic Practices and Theories , Vol. 3, No. 3 (July 2013): pp. 168-185.
Preview |
PDF
MPRA_paper_62318.pdf Download (933kB) | Preview |
Abstract
This technical note aims to provide a practical overview of the labour market’s benchmark macroeconomic models. The matching models are the primary and most popular theoretical tools used by economists to evaluate various labour market policies and to study the problem of unemployment. These models explain the co-existence in equilibrium of unemployment and vacancies through frictions in matching workers and firms and generate predictions that have the right direction: unemployment goes up in recession and down in boom, while job vacancies shift in the opposite direction. The central role of these models in imperfect labour markets has recently been confirmed by the 2010 Nobel Prize for economy awarded to the founders of this approach: Peter Diamond, Dale Mortensen and Christopher Pissarides.
Item Type: | MPRA Paper |
---|---|
Original Title: | The Benchmark Macroeconomic Models of the Labour Market |
Language: | English |
Keywords: | Matching and Job Search Theory; “non-walrasian” Labour Market; Search and Matching frictions; Job Creation and Job Destruction; Equilibrium Unemployment |
Subjects: | J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search |
Item ID: | 62318 |
Depositing User: | Gaetano Lisi |
Date Deposited: | 23 Feb 2015 18:25 |
Last Modified: | 01 Oct 2019 16:29 |
References: | Alchian, Armen A. (1969). Information Costs, Pricing and Resource Unemployment, Western Economic Journal, 7 (2), 109–128. Andolfatto, David (2008). Macroeconomic Theory and Policy (2nd Edition), MPRA Paper, 6403. Bagliano, Fabio C., and Giuseppe Bertola (1999). Metodi Dinamici e Fenomeni Macroeconomici, Il Mulino, Bologna. Bellman, Richard Ernest (1957). Dynamic Programming, Princeton University Press, Princeton, New Jersey; Bertola, Giuseppe, and Ricardo J. Caballero (1994). Cross-Sectional Efficiency and Labour Hoarding in a Matching Model of Unemployment, Review of Economic Studies, 61(3), 435-456. Beveridge, William Henry (1944). Full Employment in a Free Society. George Allen & Unwin, London. Blanchard, Oliver Jean, and Peter Diamond (1989). The Beveridge Curve, Brookings Papers on Economic Activity, 20(1), 1-76. Blanchard, Oliver Jean, and Peter Diamond (1990a). The Cyclical Behaviour of the Gross Flows of U.S. Workers, Brookings Papers on Economic Activity, 21(2), 85-156. Blanchard, Oliver Jean, and Peter Diamond (1990b). The Aggregate Matching Function. In Diamond, P. (Eds), Growth, Productivity, Unemployment, Essays to Celebrate Bob Solow's Birthday, MIT Press, Cambridge MA, 159-201. Boeri, Tito (1996). Is Job Turnover Countercyclical ?, Journal of Labor Economics, 14(4), 603-625. Bowden, Roger J. (1980). On the Existence of Secular Stability of the u–v Loci, Economica, 47(185), February, 35–50. Burda, Michael, and Charles Wyplosz (1994). Gross worker and Job Flows in Europe, European Economic Review, 38(6), 1287-1315. Coles, Melvyn G., and Eric Smith (1998). Marketplaces and Matching, International Economic Review, 39(1), 239-254. Coles, Melvyn G., and Abhinay Muthoo (1998). Strategic Bargaining and Competitive Bidding in a Dynamic Market Equilibrium, Review of Economic Studies, 65(2), 235-260. Davis, Steven J., and John C. Haltiwanger (1992). Gross Job Creation, Gross Job Destruction, and Employment Reallocation, The Quarterly Journal of Economics, 107(3), 819-863. Diamond, Peter A. (1982a). Aggregate Demand Management in Search Equilibrium, Journal of Political Economy, 90(5), 881–894. Diamond, Peter A. (1982b). Wage Determination and Efficiency in Search Equilibrium, Review of Economic Studies, 49(2), 217–227. Diamond, Peter A. (1984). A Search Equilibrium Approach to the Micro Foundations of Macroeconomics. Cambridge, The MIT Press. Diamond, Peter A., and Eric Maskin (1979). An Equilibrium Analysis of Search and Breach of Contract, I: Steady States, Bell Journal of Economics, 10(1), Spring, 282-316. Ebrahimy, Ehsan, and Robert Shimer (2010). Stock-flow Matching, Journal of Economic Theory, 145(4), 1325-1353. Fonseca, Raquel, Lopez-Garcia Paloma, and Christopher A Pissarides (2001). Entrepreneurship, start-up costs and employment, European Economic Review, 45(4-6), 692-705. Garibaldi, Pietro (1998). Job Flow Dynamics and Firing Restrictions, European Economic Review, 42(2), 245-275. Garibaldi, Pietro (2006). Hiring Freeze and Bankruptcy in Unemployment Dynamics, IZA Discussion Papers, 2263. Gregg, Paul, and Barbara Petrongolo (2005). Stock-flow Matching and the Performance of the Labor Market, European Economic Review, 49(8), 1987-2011. Hall, Robert E. (1979). A Theory of the Natural Unemployment Rate and the Duration of Employment, Journal of Monetary Economics, 5(2), 153-169. Hagedorn, Marcus, and Iourii Manovskii (2008). The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited, American Economic Review, 98(4), 1692-1706. Hicks, John R. (1963). The Theory of Wages (2nd edition), London: Macmillan. Hutt, William H. (1939). The Theory of Idle Resources, London: Jonathan Cape. Jones, Stephen R. (1993). Cyclical and Seasonal Properties of Canadian Gross Flows of Labour, Canadian Public Policy, 19(1), 1-17. Keynes, John Maynard (1936). The General Theory of Employment, Interest and Money, Palgrave Macmillan, London. Lagos, Ricardo (2000). An Alternative Approach to Search Frictions, Journal of Political Economy, 108(5), 851-873. Mortensen, Dale T. (1970). A Theory of Wage and Employment Dynamics, In Phelps, E., et al. (editor), The Microeconomic Foundations of Employment and Inflation Theory, Norton, New York. Mortensen, Dale T. (1987). Job Search and Labor Market Analysis, in O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919. Mortensen, Dale T., and Christopher A. Pissarides(1994). Job Creation and Job Destruction in the Theory of Unemployment, Review of Economic Studies, 61(3), 397-415. Mortensen, Dale T., and Christopher A. Pissarides (1998). Technological Progress, Job Creation and Job Destruction, Review of Economic Dynamics, 1(4), 733-753. Mortensen, Dale T., and Christopher A. Pissarides(1999). New Developments in Models of Search in the Labor Market, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627. Petrongolo, Barbara, and Christopher A. Pissarides (2001). Looking into the Black Box: A Survey of the Matching Function, Journal of Economic Literature, 39(2), 390-431. Phelps, Edmund S. (1968). Money-Wage Dynamics and Labor-Market Equilibrium, Journal of Political Economy, 76, 678–711. Phelps, Edmund S., et al. (1970). Microeconomic Foundations of Employment and Inflation Theory, New York: Norton. Phelps, Edmund S. (1972). Inflation Policy and Unemployment Theory: The Cost-Benefit Approach to Monetary Planning, New York: Norton. Pissarides, Christopher A. (1979). Job Matchings with State Employment Agencies and Random Search, Economic Journal, 89(356), 818-833. Pissarides, Christopher A. (1984). Efficient Job Rejection, Economic Journal, 94(376a), 97-108, Supplement. Pissarides, Christopher A. (1985a). Short-run Equilibrium Dynamics of Unemployment Vacancies, and Real Wages, American Economic Review, 75(4), 676-690. Pissarides, Christopher A. (1985b). Taxes, Subsidies, and Equilibrium Unemployment, Review of Economic Studies, 52(1), 121-133. Pissarides, Christopher A. (1986). Unemployment and vacancies in Britain, Economic Policy, 1(3), 499-559. Pissarides, Christopher A. (2000). Equilibrium Unemployment Theory (2nd Edition), MIT Press Books. Pissarides, Christopher A. (2002). Company Start-Up Costs and Employment, CEP Discussion Papers, dp0520. Shimer, Robert (2007). Mismatch, American Economic Review, 97(4), 1074-1101. Stevens, Margaret (2007). New Microfoundations For The Aggregate Matching Function, International Economic Review, 48(3), 847-868. Uren, Lawrence (2007). Entrepreneurship and Labour Market Fluctuations, Economics Bulletin, 10(13), 1-11. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/62318 |