Special Feature: Nobel Prize in Economics

Video produced by Matt Paolelli

Mortensen, and two others, were recognized for "their analysis of markets with search frictions." The three developed a framework to explain why unemployment is high at a time when there are a large number of job openings. Their model helps explain the ways in which unemployment, job vacancies and wages are affected by regulation and economic policy and can also be applied to other areas, including the housing market.