According to a popular narrative (e.g. Shiller 2008), the Great Recession was caused by a bubble in the housing market. When the bubble burst, households were left with mortgages that exceeded the values of their houses. When they stopped spending, the resulting fall in consumer demand triggered an increase in unemployment.
Market psychology, high unemployment and rational bubbles
Roger E. A. Farmer , 18 August 2011
The allocation of time over the business cycle
Erik Hurst, Loukas Karabarbounis, Mark Aguiar, 17 August 2011
After years of steady growth, the global economy has turned and so too has the interest in unemployment (see recent examples on this site Smith 2011 and Cingano and Rosolia 2011). The rising levels of unemployment around the world bring up some key questions:
The ins and outs of UK unemployment
Jennifer Smith, 18 July 2011
The labour market is in a continual state of flux. Workers are hired, fired, joining the labour force and leaving the labour force. The balance of these flows determines the unemployment rate.
Where are the jobs? Out there, somewhere. Perhaps.
Alfonso Rosolia, Federico Cingano, 17 July 2011
The global crisis hit jobs hard. According to the OECD, between 2007 and 2010 the number of employed people fell by almost 5 million throughout OECD countries and the number of job seekers rose by over 16 million.
Egypt’s demographic pressure – Where and how to create jobs?
Marga Peeters, 2 June 2011
Demographic developments place Egypt among the group of countries around the globe with the highest labour-supply growth for many years to come. The Egyptian economy can reap a demographic dividend from this human capital potential if the new entrants find a job (see also Noland and Pack 2008).
Coping with crises: Policies to protect employment and earnings
Pierella Paci, Ana Revenga, Bob Rijkers, 19 April 2011
“There cannot be a crisis next week. My schedule is already full.” – Henry A Kissinger
The roots of the German miracle
Hermann Gartner, Christian Merkl, 9 March 2011
While the US labour market has seen a dramatic loss in jobs in the Great Recession, the German labour market has seemed to be unaffected – the number of employed workers has remained stable. This is all the more surprising as German GDP dropped more than in the US in 2009 (-4.7% vs. -2.7%). Some economists (e.g.
Deviations from the Taylor rule and the dual mandate
Nicolas Groshenny, 2 February 2011
According to its official mandate, the Federal Reserve sets the federal funds rate to achieve a dual goal of price stability and maximum sustainable employment. Since the global crisis erupted, debate has been raging over the Federal Reserve's conduct of monetary policy over the period 2002-2006.
Is short-time work a good method to keep unemployment down?
Pierre Cahuc, Stéphane Carcillo, 1 February 2011
Short-time compensation (or short-time work) aims at reducing lay-offs by allowing employers to temporarily reduce hours worked while compensating workers for the induced loss of income. At present, short-time work schemes are widespread among OECD countries, having grown in popularity during the Great Recession.
Immigration, offshoring and US jobs
Gianmarco I.P. Ottaviano, Giovanni Peri, Greg C Wright, 18 November 2010
Manufacturing production and employment in the US has been in decline over recent decades. This loss of jobs is often blamed on a combination of multinational firms relocating jobs abroad and immigrant workers increasing competition in the labour market. But measuring the impact of globalisation on jobs is more difficult than that, even if many choose not to believe it.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Do entrepreneurs matter?Becker, Hvide
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013