Cyclical Unemployment, Structural Unemployment

Diamond, Peter A.

doi:10.2139/ssrn.2285009

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Cyclical Unemployment, Structural Unemployment

FRB of Boston Working Paper No. 13-5

69 Pages Posted: 26 Jun 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: June 14, 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: E24, E32, E6, J23

Suggested Citation: Suggested Citation

Diamond, Peter A., Cyclical Unemployment, Structural Unemployment (June 14, 2013). FRB of Boston Working Paper No. 13-5, Available at SSRN: https://ssrn.com/abstract=2285009 or http://dx.doi.org/10.2139/ssrn.2285009