The Unemployment/Vacancy Curve

This study discusses the important question of increased structural and frictional unemployment. The tool which is used for analyzing this phenomena is the unemployment/vacancy curve (the Beveridge curve). The book gives a theoretical foundation of the curve based on a stock/flow concept of the labour market and a micro-founded matching function. It reviews the impact of the search behaviour of employers and employees, and of 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 as the matching function (by using different estimation procedures) are given. The extent and the causes of increased structural unemployment are analyzed. The reader of the book should receive insight into the causes of structural unemployment and the methods used for the analysis of this phenomena.