The dynamic behaviour of unemployment and unfilled vacancies in Great Britain: 1958—1971

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Abstract
A number of explanations have been offered for the cause of the shift in the relationship between unemployment and unfilled vacancies, but recently Holden and Peel (1975, 1977), Parikh (1977)'and Warren (1977) have shown the basic equation of that analysis to be invalid. Warren claims that a disequilibrium approach to the problem reveals that there is no equilibrium relationship, making the discussion of shifts irrelevant. This paper demonstrates that a disequilibrium model with time dependent parameters reveals that there has been both a shift in the flow of quits and lay-offs from employment and a decline in- the efficiency of searching for work.