Shigeru Fujita, Giuseppe Moscarini, Fabien Postel-Vinay, 30 March 2020

The COVID-19 pandemic represents an unprecedented shock to labour markets. This column argues that the policy response should balance two objectives: (1) facilitating prompt reallocation of employment to essential activities during the emergency, and (2) maintaining workers’ attachment to their previous employers, preserving the aggregate stock of firm-specific human capital, and avoiding persistent mismatch, which would propagate the temporary shock into a prolonged stagnation. The authors make concrete labour market policy proposals and compare them with measures currently being implemented on both sides of the Atlantic.

Hie Joo Ahn, James Hamilton, 10 October 2016

Understanding why the long-term unemployed have so much more trouble finding work is fundamental for characterising what happens during recessions. This column argues that rather than a change in the probability of any given unemployed individual finding a job, it was a change in the composition of people newly flowing into unemployment – which can arise for example from mismatch between idiosyncratic worker characteristics and available jobs – that was the key reason unemployment went so high and took so long to come down during the Great Recession.

Vox Talks

Events

CEPR Policy Research