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The Beveridge Curve

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Author Info
Eran Yashiv
Abstract

The Beveridge curve depicts a negative relationship between unemployed workers and jobvacancies, a robust finding across countries. The position of the economy on the curve givesan idea as to the state of the labour market. The modern underlying theory is the search andmatching model, with workers and firms engaging in costly search leading to randommatching. The Beveridge curve depicts the steady state of the model, whereby inflows intounemployment are equal to the outflows from it, generated by matching.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0807.

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Date of creation: Jun 2007
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Handle: RePEc:cep:cepdps:dp0807

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Related research
Keywords: business cycle job search matching function Phillips curve unemployment vacancies wage inflation

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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  1. Bernard, Andrew & Jensen, J Bradford & Redding, Stephen J & Schott, Peter, 2007. "Firms in International Trade," CEPR Discussion Papers 6277, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Overman, Henry G. & Rice, Patricia & Venables, Anthony J., 2008. "Economic Linkages Across Space," CEPR Discussion Papers 6786, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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This page was last updated on 2008-9-16.

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