Unemployment: Models and Policies

unemployment: Models and policies

author・Pascal Michaillat
date・September 2021
school・Brown University
permalink・https://www.pascalmichaillat.org/t1.html

matching function

video 1・Why Do We Care About Unemployment? (9 mins)
video 2・Absence of Unemployment in the Competitive Model (6 mins)
video 3・Organization of the Labor Market (17 mins)
video 4・Unemployment Rate (8 mins)
video 5・Vacancy Rate (8 mins)
video 6・Beveridge Curve (9 mins)
video 7・Job-Finding Rate (10 mins)
video 8・Vacancy-Filling Rate (5 mins)
video 9・Job-Separation Rate (9 mins)
video 10・Matching Function (12 mins)
video 11・Labor Market Tightness (11 mins)

notes 1・Matching Function

reading 1・Looking into the Black Box: A Survey of the Matching Function
reading 2・The Beveridge Curve: A Survey
reading 3・Reassessing the Ins and Outs of Unemployment

matching model of the labor market

video 12・Properties of a Good Model According to Kuhn (17 mins)

LABOR SUPPLY
video 13・Notations (8 mins)
video 14・Labor Market Flows (8 mins)
video 15・Assumption of Balanced Flows (7 mins)
video 16・Computing the Labor Supply (13 mins)
video 17・Properties of the Labor Supply (8 mins)

LABOR DEMAND
video 18・Organization of the Firm (8 mins)
video 19・Computing the Recruiter-Producer Ratio (13 mins)
video 20・Properties of the Recruiter-Producer Ratio (14 mins)
video 21・Profits of the Firm (14 mins)
video 22・Problem of the Firm (5 mins)
video 23・Computing the Labor Demand (5 mins)
video 24・Properties of the Labor Demand (17 mins)

EQUILIBRIUM
video 25・Review of Labor Supply and Demand (4 mins)
video 26・Irrelevance of Unemployment Dynamics (14 mins)
video 27・Finding the Wage in a Competitive Model (17 mins)
video 28・Finding Labor Market Tightness in a Matching Model (16 mins)
video 29・Graphical Representation of the Equilibrium (5 mins)
video 30・Complete Description of the Equilibrium (8 mins)

notes 2・Matching Model of the Labor Market

reading 4・Search-Theoretic Models of the Labor Market: A Survey
reading 5・The Copernican Revolution

wages

EMPIRICAL EVIDENCE
video 31・Unemployment over the Business Cycle (14 mins)
video 32・Unemployment in the Matching Model (7 mins)
video 33・Sources of Business Cycles (10 mins)
video 34・Wages over the Business Cycle (6 mins)
video 35・Wages in the Matching Model (10 mins)
video 36・Unions (10 mins)
video 37・Minimum Wage (8 mins)
video 38・Efficiency Wages (11 mins)

WAGE FUNCTIONS
video 39・Fixed Wages (11 mins)
video 40・Rigid Wages (11 mins)
video 41・Bargained Wages (17 mins)
video 42・Surplus of the Firm (7 mins)
video 43・Surplus of the Worker (11 mins)
video 44・Surplus Sharing (11 mins)
video 45・Properties of Bargained Wages (12 mins)

notes 3・Wages

reading 6・The Cyclical Behavior of Equilibrium Unemployment and Vacancies
reading 7・Equilibrium Unemployment Theory

unemployment fluctuations

RIGID WAGES
video 46・Matching Model with Rigid Wages (10 mins)
video 47・Business-Cycle Shocks (3 mins)
video 48・Labor Supply Shocks with Rigid Wages (14 mins)
video 49・Labor Demand Shocks with Rigid Wages (15 mins)
video 50・Definition, Interpretation, and Properties of Elasticities (25 mins)
video 51・Fluctuations in Tightness with Rigid Wages (8 mins)
video 52・Elasticity of the Labor Supply (5 mins)
video 53・Elasticity of the Recruiter-Producer Ratio (4 mins)
video 54・Elasticity of the Labor Market Tightness (17 mins)
video 55・Wage Rigidity Required to Generate Realistic Fluctuations (14 mins)

BARGAINED WAGES
video 56・Matching Model with Bargained Wages (19 mins)
video 57・Labor Supply Shocks with Bargained Wages (10 mins)
video 58・Labor Demand Shocks with Bargained Wages (12 mins)
video 59・Fluctuations in Tightness with Bargained Wages (18 mins)
video 60・Value from Unemployment (17 mins)
video 61・Bargained Wages Cannot Generate Realistic Fluctuations (7 mins)

notes 4・Unemployment fluctuations

reading 8・Employment Fluctuations with Equilibrium Wage Stickiness
reading 9・The Limited Influence of Unemployment on the Wage Bargain
reading 10・The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited

frictional & rationing unemployment

NO JOB RATIONING IN USUAL MODELS
video 62・Introduction to Job Rationing (15 mins)
video 63・Evolution of Matching Models: The Standard Model (12 mins)
video 64・Evolution of Matching Models: The Rigid-Wage Model (14 mins)
video 65・Evolution of Matching Models: The Job-Rationing Model (8 mins)
video 66・All Unemployment is Frictional in the Standard and Rigid-Wage Models (6 mins)
video 67・Standard Model with Zero Recruiting Cost (17 mins)
video 68・Rigid-Wage Model with Zero Recruiting Cost (14 mins)
video 69・The Case of Infinite Job-Search Effort (18 mins)
video 70・Standard Model with Infinite Job-Search Effort (13 mins)
video 71・Rigid-Wage Model with Infinite Job-Search Effort (9 mins)

A MODEL WITH JOB RATIONING
video 72・Generating Job Rationing (6 mins)
video 73・Unemployment with Zero Recruiting Cost (14 mins)
video 74・Defining Rationing Unemployment (11 mins)
video 75・When is Rationing Unemployment Positive? (13 mins)
video 76・Unemployment with Infinite Job-Search Effort (14 mins)
video 77・Measuring Frictional and Rationing Unemployment (8 mins)
video 78・Frictional and Rationing Unemployment over the Business Cycle (12 mins)
video 79・Frictional and Rationing Unemployment in a Calibrated Model (9 mins)

notes 5・Frictional and Rationing Unemployment

reading 11・Do Matching Frictions Explain Unemployment? Not in Bad Times
reading 12・Aggregate Demand, Idle Time, and Unemployment
reading 13・An Economical Business-Cycle Model

efficient unemployment & unemployment gap

MATCHING MODELS
video 80・Why Do We Need to Know the Efficient Unemployment Rate? (6 mins)
video 81・Natural Rate and NAIRU (15 mins)
video 82・Defining the Efficient Unemployment Rate (16 mins)
video 83・Problem of the Social Planner (8 mins)
video 84・Solution to the Planner's Problem (15 mins)
video 85・Computing the Efficient Labor Market Tightness (9 mins)
video 86・Graphical Representation of Matching Efficiency (14 mins)
video 87・Why Is the Labor Market Generally Inefficient? (10 mins)

BEVERIDGEAN MODELS
video 88・Description of Beveridgean Models (9 mins)
video 89・Social Welfare in Beveridgean Models (13 mins)
video 90・Efficiency in Beveridgean Models (12 mins)
video 91・Graphical Representation of Beveridgean Efficiency (16 mins)
video 92・Comparative Statics for the Efficient Unemployment Rate (11 mins)
video 93・Graphical Representation of the Unemployment Gap (10 mins)
video 94・Sufficient-Statistic Formula for the Efficient Tightness (12 mins)
video 95・Implementing the Sufficient-Statistic Formula (14 mins)
video 96・Unemployment Gap in the United States (10 mins)

notes 6・Efficient Unemployment and Unemployment Gap

reading 14・Beveridgean Unemployment Gap
reading 15・Theory Ahead of Language in the Economics of Unemployment
reading 16・On the Efficiency of Matching and Related Models of Search and Unemployment

government policies

WAGE POLICIES
video 97・Active and Passive Labor Market Policies (7 mins)
video 98・Modeling a Minimum Wage (7 mins)
video 99・Labor Supply and Demand with a Minimum Wage (7 mins)
video 100・Designing an Optimal Policy (4 mins)
video 101・Optimal Minimum Wage (15 mins)
video 102・Evidence on the Minimum Wage (12 mins)
video 103・Other Possible Effects of a Minimum Wage (11 mins)
video 104・Modeling a Payroll Tax (8 mins)
video 105・Labor Supply and Demand with a Payroll Tax (6 mins)
video 106・Optimal Payroll Tax (9 mins)

PUBLIC EMPLOYMENT
video 107・Public Employment in the United States (7 mins)
video 108・Matching Process with Public Employment (9 mins)
video 109・Labor Supply and Demand with Public Employment (11 mins)
video 110・Graphical Representation of Public Employment (13 mins)
video 111・Computing the Public-Employment Multiplier (13 mins)
video 112・Slopes of the Labor Supply and Demand Curves (8 mins)
video 113・Expression for the Multiplier (10 mins)
video 114・Multiplier Is Positive but Less than One (9 mins)
video 115・Multiplier Is Countercyclical (9 mins)
video 116・Multiplier in Slumps (11 mins)
video 117・Multiplier in Booms (11 mins)
video 118・Optimal Public Employment (5 mins)

notes 7・Government Policies

reading 17・A Theory of Countercyclical Government Multiplier
reading 18・A Macroeconomic Approach to Optimal Unemployment Insurance: Theory
reading 19・A Macroeconomic Approach to Optimal Unemployment Insurance: Applications