Nobel Prize for economics 2010: Ivory tower - no thank you

Abstract

"Into the 1980s, the main neoclassical strand of economic theory explained the existence of unemployment exclusively by institutions 'disturbing the market', such as minimum wages. According to this point of view, a person who was not willing to work for market wages actively decided to be unemployed. This year's Nobel Prize winners for economics, Peter Diamond, Dale Mortensen and Christopher Pissarides, were the first to show that unemployment also occurs when the search for jobs and applicants is a costly process in which both sides of the market do not have sufficient information." (Author's abstract, IAB-Doku) ((en))

Cite article

Garloff, A., Möller, J. & Stephan, G. (2010): Wirtschaftsnobelpreis 2010: Elfenbeinturm - nein danke! In: IAB-Forum No. 2, p. 86-91. DOI:10.3278/IFO1002W086