Christopher Pissarides, professor of economics at the London School of Economics and Political Science, has been jointly awarded the IZA Prize in Labor Economics 2005. He shares the award with Professor Dale T Mortensen of Northwestern University.
The IZA Prize in Labor Economics honours the pioneering work of exceptionally creative scholars who have revolutionized theoretical and empirical labour market research. The prize committee included Nobel Prize laureates George Akerlof and Joseph Stiglitz. Christopher Pissarides is the first European scientist to receive this prestigious award.
The work by Professors Mortensen and Pissarides has led to a better understanding of unemployment and job flows. Their models, which are now widely used in labour economics and macroeconomics, have highly enriched research on unemployment as an equilibrium phenomenon, on labour market dynamics and cyclical adjustment. They show how the intensity with which workers search and the decision when to accept a job offer determine the distribution of unemployment durations.
The award team said: 'Professor Pissarides and Professor Mortensen have been awarded the prize for their path-breaking contributions to the analysis of markets with search and matching frictions. The vast literature that was stimulated by their fundamental contributions to search and matching theory is evidence of the power of their approach to the analysis of interactions in labour markets, marriage markets, housing market, or generally all markets with frictions.
'Both their individual contributions and their joint development of a dynamic equilibrium model of labour markets account for much of the success of job search theory and the flows approach in becoming a leading tool for microeconomic and macroeconomic analysis of labour markets. Their models, which are now widely used in labour economics and macroeconomics, have highly enriched research on unemployment as an equilibrium phenomenon, on labour market dynamics and cyclical adjustment. Dale Mortensen's and Christopher Pissarides's research on labour market search and job matching has also significantly directed and shaped the empirical literature.'
The official award ceremony will take place in Berlin on 24 October 2005.
Financial Times Deutschland
Metro International (29 Sep 05)
IZA Prize in Labor Economics was awarded to Christopher Pissarides, LSE.
28 September 2005