Cyclical Unemployment, Structural Unemployment

Diamond, Peter A.

doi:10.2139/ssrn.2225737

Download This Paper

Open PDF in Browser

Add Paper to My Library

Cyclical Unemployment, Structural Unemployment

CESifo Working Paper Series No. 4130

51 Pages Posted: 28 Feb 2013

See all articles by Peter A. Diamond

Peter A. Diamond

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

There are 4 versions of this paper

Date Written: February 27, 2013

Abstract

Whenever unemployment stays high for an extended period, it is common to see analyses, statements, and rebuttals about the extent to which the high unemployment is structural, not cyclical. This essay views the Beveridge Curve pattern of unemployment and vacancy rates and the related matching function as proxies for the functioning of the labor market and explores issues in that proxy relationship that complicate such analyses. Also discussed is the concept of mismatch.

JEL Classification: E600, E240, E320, J230

Suggested Citation: Suggested Citation

Diamond, Peter A., Cyclical Unemployment, Structural Unemployment (February 27, 2013). CESifo Working Paper Series No. 4130, Available at SSRN: https://ssrn.com/abstract=2225737 or http://dx.doi.org/10.2139/ssrn.2225737