Like most economists, what they have found about why the jobless and ready-employers don’t find each other seems obvious. You have to find out there is job opening you are interested in. Employers need to get resumes. It takes a while for both employers and employees to make the decision that this is what they want. And these guys came up with a framework to study the problem of why people stay unemployed longer than they should and what can be done about it.
So what would today’s Nobel Prize winners do to solve the current problem of the unemployed? And does the awarding of the prize contribute to the politicians’ lowering joblessness?
Speaking from his north London home, Pissarides told The Associated Press the announcement came as “a complete surprise” though his work had already helped shape thinking on both sides of the Atlantic.
For example, the New Deal for Young People, a British government policy aimed at getting 18-24-year-olds back on the job market after long periods of unemployment, “It is very much based on our work,” he said.
“One of the key things we found is that it is important to make sure that people do not stay unemployed too long so they don’t lose their feel for the labor force,” Pissarides told reporters in London. “The ways of dealing with this need not be expensive training – it could be as simple as providing work experience.”
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