Search, unemployment, and the Beveridge curve: Experimental evidence

John Duffy and Brian C. Jenkins

Labour Economics, 2024, vol. 87, issue C

Abstract: We report on a laboratory experiment testing the predictions of the Diamond–Mortensen–Pissarides (DMP) search-and-matching model, which is a workhorse, decentralized model of unemployment and the labor market. We focus on the job vacancy posting problem that firms face in the DMP model. We explore the model’s comparative statics predictions concerning variations in the separation rate, the vacancy posting cost, and the firm’s surplus earned per employee. Across all treatments, we find strong evidence for an inverse relationship between vacancies and unemployment, consistent with the Beveridge curve. We also find that the results of our various comparative statics exercises are in-line with the predictions of the theory.

Keywords: Beveridge curve; Job search; Matching; Vacancies; Unemployment; Experimental economics (search for similar items in EconPapers)
JEL-codes: C92 J63 J64 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537124000149
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:87:y:2024:i:c:s0927537124000149

DOI: 10.1016/j.labeco.2024.102518

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().