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.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Beveridge, W. 1944. Full employment in a free society. London: George Allen and Unwin.
Blanchard, O., and P. Diamond. 1989. The Beveridge curve. Brookings Papers on Economic Activity 1: 1–60.
Bowden, R. 1980. On the existence and secular stability of the u-v loci. Economica 47: 35–50.
Dow, J., and L. Dicks-Mireaux. 1958. The excess demand for labour: A study of conditions in Great Britain, 1946–56. Oxford Economic Papers 10: 1–33.
Hansen, B. 1970. Excess demand, unemployment, vacancies and wages. Quarterly Journal of Economics 84: 1–23.
Holt, C., and M. David. 1966. The concept of vacancies in a dynamic theory of the labor market. In Measurement and interpretation of job vacancies, ed. NBER. New York: Columbia University Press.
Layard, R., S. Nickell, and R. Jackman. 2005. Unemployment: Macroeconomic performance and the labour market. 2nd ed. Oxford: Oxford University Press.
Lipsey, R. 1960. The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1862–1957: A further analysis. Economica 27: 1–31.
Petrongolo, B., and C. Pissarides. 2001. Looking into the black box: A survey of the matching function. Journal of Economic Literature 39: 390–431.
Pissarides, C. 1986. Unemployment and vacancies in Britain. Economic Policy 1: 499–559.
Pissarides, C. 2000. Equilibrium unemployment theory. 2nd ed. Cambridge, MA: MIT Press.
Yashiv, E. 2006. Labor search and matching in macroeconomics. Institute for the Study of Labour (IZA) Discussion Paper no. 2743.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Yashiv, E. (2018). Beveridge Curve. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2449
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_2449
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences