Studies in Labor Mobility and Unemployment
{'Code': '04050100', 'Directorate': {'Abbreviation': 'SBE', 'LongName': 'Direct For Social, Behav & Economic Scie'}, 'Division': {'Abbreviation': 'SES', 'LongName': 'Divn Of Social and Economic Sciences'}}
{'SignBlockName': 'Daniel H. Newlon', 'PO_EMAI': None, 'PO_PHON': None}
A major puzzle in economics is why the equilibrium rate of unemployment         is much higher now than it was twenty years ago.  For example, in the           case of men in their prime working years, the unemployment rates of the         early and mid 1980s were more than triple the rates experienced by this         group in the 1960s.  Other groups show similar increase in their                equilibrium rates of unemployment.  Under the previous grant, the               authors characterized many of the key features of the evolution of              unemployment over this period, which caused them to reject existing             theories of unemployment because they were inconsistent with the facts.         It was found that rising unemployment over this period was associated           with much longer periods of unemployment and declining sectoral                 mobility of the labor force.  In addition, unemployment cut much more           deeply into the population of prime aged workers.  Using various                sources of micro data on individual unemployment and unemployment               duration, the authors will extent this earlier empirical work to a more         thorough study of unemployment dynamics at the individual level,                including the key role of mobility.  An optimizing model will be                developed and tested which emphasizes the importance of specific skills         and specialization of workers, along with optimal individual mobility           decisions by specifically trained workers.                                                                                                                      Existing theories of labor markets cannot adequately explain the                secular increase in equilibrium unemployment rates observed over                the past twenty years or so.  This project will develop and test                a theoretical framework for doing just that.  It is hoped that the              results of this study may suggest ways of reducing the long-term                equilibrium rate of unemployment, and the duration of unemployment              spells.
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{'Code': '1320', 'Text': 'Economics'}
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