In this chapter we will:
- See that during the last 40 years, the industrialized countries have evolved in very different directions with respect to unemployment
- Observe the magnitude of job creation, job destruction, and worker flows
- Discover the meaning and the importance of the Beveridge curve
- Analyze the functioning of the labor market as a matching process between vacant jobs and job seekers
- Think about the efficiency of a labor market with trading externalities
- Analyze the dynamics of vacancies and unemployment
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