Wednesday, December 28, 2011

Does unemployment mean people want to work less?

http://economix.blogs.nytimes.com/2008/12/24/are-employers-unwilling-to-hire-or-are-workers-unwilling-to-work/

I am not convinced at all. I would say that the burden of proof is on the side of those arguing that unemployment in the current recession is coming from the supply side (workers not wanting to work). Given the importance of the issue, the evidence presented by Casey Mulligan is, in my opinion, circumstancial.

Further evidence:

http://www.nber.org/papers/w17584

Thoughts?

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