Equilibrium Unemployment Theory

An equilibrium theory of unemployment assumes that firms and workers maximize their payoffs under rational expectations and that wages are determined to exploit the private gains from trade. This book focuses on the modeling of the transitions in and out of unemployment, given the stochastic processes that break up jobs and lead to the formation of new jobs, and on the implications of this approach for macroeconomic equilibrium and for the efficiency of the labor market.This approach to labor market equilibrium and unemployment has been successful in explaining the determinants of the "natural" rate of unemployment and new data on job and worker flows, in modeling the labor market in equilibrium business cycle and growth models, and in analyzing welfare policy. The second edition contains two new chapters, one on endogenous job destruction and one on search on the job and job-to-job quitting. The rest of the book has been extensively rewritten and, in several cases, simplified.

ISBN 0262161877   Volumes 1 ISBN13 9780262161879 (What's this?)   Weight (grammes) 544 Publisher MIT Press Ltd   Published in Cambridge, Mass. Imprint MIT Press   Previous ISBN 9780631152132 Format Hardback   Height (mm) 231 Publication date 03 Apr 2000   Width (mm) 157 Library of Congress 99-41746   Spine width (mm) 20 DEWEY 331.137011   Academic level Undergraduate, Postgraduate, Professional / Scholarly DEWEY edition DC21   Interest age From 18 Pages 272

		Preface
		Preface to the First Edition
1		The Labor Market		3
1.1		Trade in the Labor Market		3
1.2		Job Creation		10
1.3		Workers		13
1.4		Wage Determination		15
1.5		Steady-State Equilibrium		18
1.6		Capital		23
1.7		Out-of-Steady-State Dynamics		26
2		Endogenous Job Destruction		37
2.1		Productivity Shocks and Reservation Rules		37
2.2		Steady-State Equilibrium		40
2.3		Unemployment, Job Creation, and Job Destruction		46
2.4		Capital		57
2.5		Out-of-Steady-State Dynamics		59
3		Long-Run Equilibrium and Balanced Growth		67
3.1		Large Firms		68
3.2		Unemployment Income		70
3.3		Technological Progress: The Capitalization Effect		75
3.4		Endogenous Capital and Interest		77
3.5		Creative Job Destruction		82
4		Labor Turnover and On-the-Job Search		95
4.1		Exogenous Labor Turnover		95
4.2		Search on the Job		103
4.3		Equilibrium		109
4.4		The Implications of On-the-Job Search of Equilibrium		114
		More...

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