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Unemployment and Macroeconomics

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Pissarides, Christopher A

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Abstract

This paper discusses some issues in the theory of unemployment; proposes a framework for the analysis of unemployment; and applies the framework to the analysis of the rise in unemployment in Britain after 1979. The framework is based on bilateral monopoly in the labor market and the explanation for the rise in unemployment in Britain rests primarily with a demand-side shock, which caused the rise in 1980-81, and supply-side persistence, which has kept unemployment up since then. Copyright 1989 by The London School of Economics and Political Science.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 56 (1989)
Issue (Month): 221 (February)
Pages: 1-14
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Handle: RePEc:bla:econom:v:56:y:1989:i:221:p:1-14

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  1. Arantza Gorostiaga, 2004. "Optimal Fiscal Policy with Rationing in the Labor Market," Economic Working Papers at Centro de Estudios Andaluces E2004/10, Centro de Estudios Andaluces. [Downloadable!]
    Other versions:
  2. James W. Boudreau, 2008. "Sequential Pre-Marital Investment Games: Implications for Unemployment," Working papers 2008-45, University of Connecticut, Department of Economics. [Downloadable!]
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