Bewley's work on the early 1990s recession needs to be read and replicated here - i am already too committed time-wise to do this alone but if any student or researcher wants me to supervise this then get in touch. The basic idea is to interview employers (and also employees - see other work by Bewley) and compare the rationale behind their decisions with standard labour market theory. Would be a really good MA research option or final year project particularly if updated in line with recent behavioural labour economics work
http://cowles.econ.yale.edu/P/cp/p09b/p0963.pdf
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