© The Nobel Foundation. Photo: U. Montan
Christopher A. Pissarides
Born: 20 February 1948, Nicosia, Cyprus
Affiliation at the time of the award: London School of Economics and Political Science, London, United Kingdom
Prize motivation: "for their analysis of markets with search frictions."
Prize share: 1/3
When employers look for workers and job seekers look for work, they do not immediately find each other. The search process requires time and resources, and friction in the market result in less efficient outcomes. Christopher Pissarides and Dale Mortensen have developed theories for these types of markets and have applied them to the labor market. Their models help us understand how regulation and economic policies affect unemployment, job vacancies, and wages. These theories have also been applied in other areas, such as housing markets.