The University of Maine DigitalCommons@UMaine Honors College Spring 5-2018 The Analysis of Labor Market Efficiency: A Comparative Analysis of Maine and the United States Sarah M. Welch University of Maine Follow this and additional works at: https://digitalcommons.library.umaine.edu/honors Part of the Finance Commons Recommended Citation Welch, Sarah M., "The Analysis of Labor Market Efficiency: A Comparative Analysis of Maine and the United States" (2018). Honors College. 361. https://digitalcommons.library.umaine.edu/honors/361 This Honors Thesis is brought to you for free and open access by DigitalCommons@UMaine. It has been accepted for inclusion in Honors College by an authorized administrator of DigitalCommons@UMaine. For more information, please contact
[email protected]. THE ANALYSIS OF LABOR MARKET EFFICIENCY: A COMPARATIVE ANALYSIS OF MAINE AND THE UNITED STATES by Sarah M. Welch A Thesis Submitted in Partial Fulfillment of the Requirements for a Degree with Honors (Financial Economics) The Honors College University of Maine May 2018 Advisory Committee: Andrew Crawley, Assistant Professor of Economics, Advisor James Breece, Associate Professor of Economics Angela Daley, Assistant Professor of Economics Todd Gabe, Professor of Economics Jordan LaBouff, Associate Professor of Psychology, Honors College © 2018 Sarah M. Welch All Rights Reserve ABSTRACT The purpose of this research is to analyze the change in the labor market efficiency from before to after the great recession and its effect on economic output following the recession. Concerns have been raised about the adjustment of the labor market compared to the recovery of other economic indicators. Influenced by the methods of Blanchard and Diamond (1989) and Dixon et al.