Matchmaking is all about human connections
"The fascination I always had with the economy was focused on the labor market, because that’s where people interact. In fact, this interaction is not only the pure economic interaction that you go in there to produce, get an income and leave, but more about how well-connected people are in the labor market, how well-matched they are," Pissarides explains cheerfully. "So I was trying to break away as much as possible from the very cold way that economists would look at work, but at the same time do it by keeping existing principles of economic modeling. How far can these principles that started with Adam Smith about 250 years ago - and developed over the centuries - take us? They can explain some things, they can get some things wrong."
The drive to understand unemployment
In Pissarides’ first years in the UK, long before he was knighted by the Queen or won the Nobel Prize, he witnessed unemployment and was determined to get a better understanding of it. His research introduced the value of the unemployed worker.
When I realized there were people who wanted jobs but couldn’t get them even though companies were hiring, it became obvious there was a great lack of understanding of the problem and what could be done about it.