The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Beveridge Curve

  • Eran Yashiv
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2449

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.

Keywords

Beveridge curve Beveridge, W. H. Business cycle Excess demand and supply Frictions Information costs Job search Matching function Microfoundations Phillips curve Unemployment Vacancies Wage inflation 

JEL Classifications

E24 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Eran Yashiv
    • 1
  1. 1.