Discover the concept of underemployment equilibrium in economics, its effects on unemployment rates, and why it persists. Explore Keynesian insights into economic downturns.

We investigate the interaction between labour and credit market imperfections for equilibrium unemployment in the presence of profit sharing. In a partial equilibrium with exogenous outside options, ...

The flow approach to the labour market is based on a clear distinction between trade and production. This paper argues that this separation is not realistic because many firms in developed economies ...

The current downturn has caused the U.S. unemployment rate to rise by nearly 2 percentage points and approach the high of 6.3% reached in the aftermath of the 2001 recession. High unemployment ...

During the latter half of the 1990s, productivity grew at almost twice the pace of the preceding ten years. Widely attributed to developments in the information technology sector, this surge in ...

The recent crisis has had differential effects across U.S. states and industries causing a wide geographic dispersion in skill mismatches and housing market performance. We document these facts and, ...

Thanks to Patrick Toche for his help in creating this page. Updated November 2002. Aghion, Philippe and Peter Howitt (1994). Growth and Unemployment. Review of Economic Studies, 61, 477-494. Aghion, ...

UNEMPLOYMENT is measured by the number of people seeking jobs. The unemployment rate is unemployment as a percentage of the labour force. It is a form of instability in an economy when aggregate ...

2.) The program ex2.m solves the simple job search model in question #6 in problem set 1. It calls the program valit.m. (These programs were written by Pierre Olivier-Weill, a Stanford graduate ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and ...