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The Beveridge Curve

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  • Eran Yashiv

Abstract

The Beveridge curve depicts a negative relationship between unemployed workers and job vacancies, a robust finding across countries. The position of the economy on the curve gives an idea as to the state of the labour market. The modern underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows from it, generated by matching.

Suggested Citation

  • Eran Yashiv, 2007. "The Beveridge Curve," CEP Discussion Papers dp0807, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0807
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    File URL: https://cep.lse.ac.uk/pubs/download/dp0807.pdf
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    References listed on IDEAS

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    1. repec:bla:econom:v:47:y:1980:i:185:p:35-50 is not listed on IDEAS
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    8. Yashiv, Eran, 2006. "Search and Matching in Macroeconomics," CEPR Discussion Papers 5459, C.E.P.R. Discussion Papers.
    9. Charles Holt & Martin David, 1966. "The Concept of Job Vacancies in a Dynamic Theory of the Labor Market," NBER Chapters, in: The Measurement and Interpretation of Job Vacancies, pages 73-110, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Kasrin Zein & Lang Guenter, 2013. "Estimating the Beveridge Curve of Egypt: An Econometric Study for the Period 2004 to 2010," Review of Middle East Economics and Finance, De Gruyter, vol. 8(3), pages 1-16, January.
    2. Sylwia Roszkowska, 2009. "Aggregate Matching Function. The Case of Poland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 1(2), pages 157-177, November.
    3. Altavilla, Carlo & Caroleo, Floro Ernesto, 2009. "Unintended Effects of National-based Active Labour Market Policies," IZA Discussion Papers 4045, Institute of Labor Economics (IZA).
    4. Vanhala, Juuso & Bonthuis, Boele & Jarvis, Valerie, 2013. "What’s going on behind the euro area Beveridge curve(s)?," Working Paper Series 1586, European Central Bank.

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    More about this item

    Keywords

    business cycle; job search; matching function; Phillips curve; unemployment; vacancies; wage inflation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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