The Beveridge Curve, Matching, and Labour Market Flows: A Reinterpretation

Nils Gottfries and Karolina Stadin

Oxford Bulletin of Economics and Statistics, 2025, vol. 87, issue 5, 1025-1044

Abstract: A standard theory of the Beveridge curve is based on the matching function: when unemployment is high, vacancies are filled quickly, so fewer vacancies are needed to balance the inflow into unemployment. Estimating matching functions on panel data, we find no (or very weak) evidence that vacancies are filled quickly when unemployment is high. A model with on‐the‐job search can explain the Beveridge curve when vacancies are filled at a constant rate: when unemployment is high, unemployed job seekers fill a larger share of the vacancies, so fewer vacancies are needed to balance the inflow into unemployment.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/obes.12676

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:bla:obuest:v:87:y:2025:i:5:p:1025-1044

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0305-9049

Access Statistics for this article

Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple

More articles in Oxford Bulletin of Economics and Statistics from Department of Economics, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().