Peter Diamond
Peter Diamond, of the Massachusetts Institute of Technology, was one of three economists to win the 2010 Nobel economics prize Monday for developing a theory that helps explain why many people can remain unemployed despite a large number of job vacancies. He shared the prize with Dale Mortensen of Northwestern University and Christopher Pissarides of the London School of Economics.
Their work analyzed some of the roadblocks that prevent buyers and sellers from efficiently pairing up in markets.
“Why are so many people unemployed at the same time that there are a large number of job openings? How can economic policy affect unemployment? This year’s laureates have developed a theory which can be used to answer these questions,” the Royal Swedish Academy of Sciences said in a press release. “One conclusion is that more generous unemployment benefits give rise to higher unemployment and longer search times,” the academy said.
The economics prize was created in 1968 by the Swedish central bank in memory of Swedish industrialist Alfred Nobel, who originated the first Nobel prizes.
