Chapter Learning Objectives

  • Recognize the exceptional titanic dynamism of the U.S. labor market and be familiar with the core facts.
  • Understand the concepts of gross worker flows, gross job flows, labor churning, and the meaning of excess reallocation.
  • Explain the meanings of steady-state unemployment, the Beveridge curve, and the matching technology.
  • Recognize the workings of the matching model and be able to use it to explore the effects of an assortment of economic events on the equilibrium unemployment rate.
  • Understand the concept of job description, and the root source of the increase in the unemployment rate that is witnessed during a recession.