IZA Prize in Labor Economics

Zimmermann | Mortensen | Pissarides | Wulf-Mathies | Pfann

On October 24, the IZA Prize in Labor Economics 2005 was awarded to Dale T. Mortensen (Northwestern University) and Christopher A. Pissarides (London School of Economics) in honor of their path-breaking contributions to the analysis of markets with search and matching frictions. Before an audience of some 250 invited guests at the Sony Center in Berlin, IZA Director Klaus F. Zimmermann and Monika Wulf-Mathies (Deutsche Post World Net) presented the award to Mortensen and Pissarides. Gerard Pfann (Maastricht University) gave the laudation speech for the prize-winners. The event, which was moderated by TV anchor Cherno Jobatey, included a speech by Federal Minister of Finance Hans Eichel, who also participated in the subsequent panel discussion [view program].

The work by Mortensen and Pissarides is highly relevant for today's policymakers as it has led to a better understanding of unemployment and job flows. Their models, which are now widely used in labor economics and macroeconomics, have highly enriched research on unemployment as an equilibrium phenomenon, on labor 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.

Carrying a cash reward of 50,000 euros, the IZA Prize in Labor Economics is one of the most important and renowned scientific awards in economics.

Read more:
Press Statement | Award Statement | Laudation by Gerard Pfann | IZA Prize Homepage | Photo Gallery | Handelsblatt Article | LSE Announcement