The shifting reasons for beveridge curve shifts
By: Barlevy, G., Faberman, R.J. Hobijn, B. and Şahin, A
.
Material type: 
BookPublisher: The Journal of Economic Perspectives Description: 38(2), Spring, 2024: p.83-106.Subject(s): Beveridge curve, Labor market dynamics, Search and matching theory, Unemployment trends, Job openings, Inflation linkages, Demographic inflows, Matching efficiency, Great Recession, Worker mobility, Job switching behavior, Economic indicators, Policy analysis, Labor economics, Flow analogy, Employment outflows, Structural shifts, US labor market, 1959–2023 trends, Economic policy implications
In:
The Journal of Economic PerspectivesSummary: Authors discuss how the relative importance of factors that contribute to movements of the US Beveridge curve has changed from 1959 to 2023. They review these factors in the context of a simple flow analogy used to capture the main insights of search and matching theories of the labor market. Changes in inflow rates, related to demographics, accounted for Beveridge curve shifts between 1959 and 2000. A reduction in matching efficiency, that depressed unemployment outflows, shifted the curve outwards in the wake of the Great Recession. In contrast, the most recent shifts in the Beveridge curve appear driven by changes in the eagerness of workers to switch jobs. Finally, argue that, while the Beveridge curve is a useful tool for relating unemployment and job openings to inflation, the link between these labor market indicators and inflation depends on whether and why the Beveridge curve shifted. Therefore, a careful examination of the factors underlying movements in the Beveridge curve is essential for drawing policy conclusions from the joint behavior of unemployment and job openings.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/jep.38.2.83
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | 38(2), Spring, 2024: p.83-106 | Available | AR132547 |
Authors discuss how the relative importance of factors that contribute to movements of the US Beveridge curve has changed from 1959 to 2023. They review these factors in the context of a simple flow analogy used to capture the main insights of search and matching theories of the labor market. Changes in inflow rates, related to demographics, accounted for Beveridge curve shifts between 1959 and 2000. A reduction in matching efficiency, that depressed unemployment outflows, shifted the curve outwards in the wake of the Great Recession. In contrast, the most recent shifts in the Beveridge curve appear driven by changes in the eagerness of workers to switch jobs. Finally, argue that, while the Beveridge curve is a useful tool for relating unemployment and job openings to inflation, the link between these labor market indicators and inflation depends on whether and why the Beveridge curve shifted. Therefore, a careful examination of the factors underlying movements in the Beveridge curve is essential for drawing policy conclusions from the joint behavior of unemployment and job openings.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/jep.38.2.83
There are no comments for this item.