Markets with Frictions

About

Why do unemployment and job vacancies coexist? Why do some workers struggle to find jobs while firms struggle to hire? And how can public policy shape these outcomes?

Many markets—from labor to housing—are characterized by search frictions: buyers and sellers do not meet instantaneously, matching requires time and resources, and markets do not clear smoothly. These frictions generate unemployment alongside unfilled vacancies, slow job creation, and create persistent mismatches between workers, firms, and locations.

This summer school offers a rigorous research-master/PhD–level introduction to the core models used to study frictional markets. We place particular emphasis on labor markets and the policy implications that emerge from modern search-and-matching theory but we also consider housing and product markets

Course leader

Dr. Björn Brügemann (Vrije Universiteit Amsterdam), Dr. Ana Figueiredo (Vrije Universiteit Amsterdam) and Prof. Dr. Pieter Gautier (Vrije Universiteit Amsterdam)

Target group

This summer school welcomes (research) master students, PhD students, post-docs, and professionals from policy institutions such as central banks, ministries, and international organizations. The course is a rigorous research-master/PhD–level introduction to the economics of markets with frictions, providing participants with the theoretical and practical foundation to engage confidently with current research and policy applications

Course aim

Learning Objectives
This course equips participants with the conceptual tools needed to understand how frictions shape labor and housing market outcomes, and how these frictions inform effective policy design.

After completing the course, participants will be able to:

Work with foundational search-and-matching frameworks, including the Mortensen–Pissarides (DMP) model and competitive search theory.
Analyze how key policy institutions—for example, unemployment insurance (UI), employment protection legislation (EPL), temporary contracts, and wage-setting rules—affect labor market dynamics and outcomes

Fee info

Early Bird: applications must be submitted before April 13, 2026 to avail of this discount. The course fee covers tuition, course materials, daily lunches and coffee/tea during short breaks, social event including a dinner and farewell drinks. The course fee does not include accommodation.