The Unemployment/Vacancy Curve : Theoretical Foundation and Empirical Relevance

This books discusses the important question of increased structural and frictional unemployment. The tool which is used for analysing this phenomenais the umemployment/vacancy curve (the Beveridge curve). The book gives a theoretical foundation of the curve based on a stock/flow concept of the labor market and a micro-founded matching function. It reviews the impact ofthe search behavior of employers and employees, hysteresis phenomena andof the matching technology on the shape and position of the U/V curve. The second part of the book shows how the U/V curve should be used for empirical purposes: Empirical estimates of the U/V curve as well asthe matching function (by using different estimation procedures) are given. The extent and the causes of increased structural unemployment are analysed. The reader of the book will get a comprehensive insight into the causes of structural unemployment and the methods used for the analysis of this phenomena