ABSTRACT
The theory of employment, and respectively unemployment, clearly remains a central problem in economic analysis. Regardless of their methodological background, the short-run fluctuations in aggregate (un)employment have particularly attracted economists’ attention. Labour market dynamics have been explained by a whole variety of factors. Since the works of Hicks (1937) and Modigliani (1944), the present mainstream debates on the theory of employment/unemployment have substantially revolved around rigidities, their validity as a stylized fact, and, in the case of a positive answer, their sources and consequences.
