Why People Don't Find Work
This paper provides a brief, non-technical survey of the major theories about why people remain unemployed. The aim is to provide a macroeconomic perspective on the microeconomic problem of why people don't find work. The first section deals with market-clearing theories: the natural rate hypothesis, the intertemporal substitution hypothesis, and real business cycle theory. The second section deals with imperfect information as an impediment to finding work: search theory, implicit contract theory, and efficiency wage theory. The third section concerns labour market institutions as sources of unemployment: labour unions, supply shocks combined with real wage rigidity, and automation and trade combined with real wage rigidity. The fourth and fifth sections deal with deficient demand and labour turnover costs as sources of unemployment. The final section deals with unemployment dynamics.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Dec 1993|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:883. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.