Christopher A. Pissarides

Christopher A. Pissarides is a Cypriot-British economist whose research on labor-market search and matching helped explain unemployment. He shared the 2010 Nobel Memorial Prize in Economic Sciences.

Search and matching theory: A framework explaining how workers and firms find one another and form employment relationships when information and search are imperfect. Pissarides helped develop this framework into a theory of labor-market outcomes.
Unemployment: The condition of being without work while available for and seeking employment. Pissarides’s theory explains why joblessness can persist even when workers and jobs coexist.
Peter A. Diamond: An American economist whose work on search frictions contributed to the theory of markets and unemployment. Diamond shared the 2010 economics prize with Pissarides and Dale Mortensen.
Classical unemployment: Unemployment attributed to wages being above the level that would clear the labor market. Search theory explains unemployment through costly matching, not only wages that prevent market clearing.
Diamond–Mortensen–Pissarides model: A model of unemployment and job creation built around costly search, wage bargaining, and matching between workers and vacancies. This model formalizes the research associated with Pissarides and his Nobel co-laureates.
Job creation: The process through which firms establish new positions and recruit workers. Vacancy creation is a central firm decision in the search-and-matching framework.
Dale T. Mortensen: An American economist whose research helped develop search theory in labor economics. Mortensen’s work, alongside Pissarides’s, shaped the model recognized by the Nobel committee.
Keynesian economics: An economic tradition emphasizing aggregate demand and its influence on output and employment. Pissarides’s framework focuses on matching frictions, complementing demand-centered explanations of unemployment.
Matching function: A mathematical relationship describing how job seekers and vacancies generate new employment matches over time. It represents the rate at which the labor market turns search into jobs.
Labor market frictions: Impediments that make hiring and job finding costly, slow, or uncertain. These frictions explain why unemployment does not disappear as soon as vacancies arise.

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Search theoryRelated: His work helped build the modern equilibrium theory of labor-market search.