Michael Walch

I Didn’t Win the Nobel Prize in Economics

Posted in Economics by michaelwalch on 12 October, 2010

I didn’t win the Nobel Prize in Economics, but Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides won it for elegantly stating what all recent MArch graduates (and our peers in other fields) know all too well.  It’s tough finding a job in a recession.  The prize was awarded for research which went beyond the simple supply and demand model of jobs where labor is a commodity like any other with suppliers (employees or employment-seekers) and and consumers (employers).  (The analogy could be thought of the other way around where employers supply jobs to applicants, but then the producer is paying the customer to take the commodity… anyway have fun with the wording.)  The research focused on the actual “search frictions” involved in getting qualified applicants to available positions.  This approach offers insights into the troubles of under-employment and unemployment  – why it’s so difficult to efficiently employ everyone in a population (say the United States).

Like nearly all economics, it doesn’t offer a laundry-list of policy recommendations, but it at least can provide us job-seekers with a theoretical understanding of how it can be that there seem to be jobs out there, we’re qualified and applying, and yet we still end up watching TV and reading books day after day.

Here’s a really good NY Times article about not only the prize-winning research, but the work that informed it: The Work Behind the Nobel Prize

In the meantime, since I *am* an architect…

The data is old, (Mar 2009) but look at the building-related trades there in the bright red.

From the Guardian Data Blog.

Last but not least, make this posting less relevant by hiring me!  Take a look at my resume and bio online.


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