Dale T. Mortensen
An economist who decoded the persistent puzzle of unemployment, showing how frictions in the labor market prevent seamless job matching.
1939–2014 (age 75)·American economist·Birthday: February 2·The Silent Generation
Biography
Dale Mortensen asked a deceptively simple question: in a functioning economy, why do jobs and workers looking for each other often fail to connect? His work, developed alongside Peter Diamond and Christopher Pissarides, created the framework of search and matching theory, which became the standard lens for understanding labor market frictions. Mortensen demonstrated that unemployment isn't just a symptom of economic downturns; it's a constant feature due to the time, information gaps, and inherent costs of searching for the right match. His models explained why vacancies and unemployment can coexist, influencing thinking on everything from unemployment benefits to job placement services. For this groundbreaking contribution, he shared the 2010 Nobel Prize in Economics. A dedicated teacher at Northwestern University for decades, Mortensen's quiet, Midwestern demeanor belied the transformative impact of his ideas on how governments and institutions view the very nature of work and joblessness.
The Silent Generation
1928–1945
Born between the Depression and the end of WWII. Too young to fight, old enough to remember. They became the conformist middle managers of the 1950s — and the civil rights leaders who quietly dismantled Jim Crow.
Dale was born in 1939, placing them squarely in The Silent Generation. The events that shaped this generation — world wars, depression, and rapid industrialization — shaped the world they entered and the choices available to them.
#1 When Dale Was Born
The biggest hits of 1939
#1 Movie
Gone with the Wind
Best Picture
Gone with the Wind
Dale's Life & Times
The world at every milestone
1939Born
World War II begins; The Wizard of Oz premieres
Gas: $0.19/galMin wage: $0.30/hrPresident: Franklin D. Roosevelt"Over the Rainbow" — Judy GarlandBest Picture: Gone with the Wind
1944Started school
D-Day: Allied forces land at Normandy
Gas: $0.21/galHome: $3,400Min wage: $0.30/hrPresident: Franklin D. Roosevelt"Swinging on a Star" — Bing CrosbyBest Picture: Going My Way
1952Became a teenager
Queen Elizabeth II ascends the throne
Gas: $0.27/galHome: $8,350Min wage: $0.75/hrPresident: Harry S. Truman"Blue Tango" — Leroy AndersonBest Picture: The Greatest Show on Earth
1955Could drive
Rosa Parks refuses to give up her bus seat
Gas: $0.29/galHome: $9,550Min wage: $0.75/hrPresident: Dwight D. Eisenhower"Rock Around the Clock" — Bill Haley & His CometsBest Picture: Marty
1957Could vote
Sputnik launches the Space Age
Gas: $0.31/galHome: $10,550Min wage: $1.00/hrPresident: Dwight D. Eisenhower"All Shook Up" — Elvis PresleyBest Picture: The Bridge on the River Kwai
1960Turned 21
Kennedy-Nixon debates become first televised presidential debates
Gas: $0.31/galHome: $11,900Min wage: $1.00/hrPresident: Dwight D. Eisenhower"Theme from A Summer Place" — Percy FaithBest Picture: The Apartment
1969Turned 30
Apollo 11: humans walk on the Moon; Woodstock festival
Gas: $0.35/galHome: $15,550Min wage: $1.60/hrPresident: Richard Nixon"Sugar, Sugar" — The ArchiesBest Picture: Midnight Cowboy
1979Turned 40
Iran hostage crisis begins; Three Mile Island accident
Gas: $0.86/galHome: $37,900Min wage: $2.90/hrPresident: Jimmy Carter"My Sharona" — The KnackBest Picture: Kramer vs. Kramer
1989Turned 50
Berlin Wall falls; Tiananmen Square protests
Gas: $1.00/galHome: $79,100Min wage: $3.35/hrPresident: George H.W. Bush"Look Away" — ChicagoBest Picture: Driving Miss Daisy
1999Turned 60
Columbine shooting; Y2K panic builds
Gas: $1.17/galHome: $113,900Min wage: $5.15/hrPresident: Bill Clinton"Believe" — CherBest Picture: American Beauty
2009Turned 70
Michael Jackson dies; Bitcoin created
Gas: $2.35/galHome: $148,500Min wage: $7.25/hrPresident: Barack Obama"Boom Boom Pow" — The Black Eyed PeasBest Picture: The Hurt Locker
2014Died at 75
Russia annexes Crimea; Ebola outbreak in West Africa
Gas: $3.37/galHome: $160,700Min wage: $7.25/hrPresident: Barack Obama"Happy" — Pharrell WilliamsBest Picture: Birdman
Key Achievements
- Awarded the 2010 Nobel Memorial Prize in Economic Sciences for his analysis of markets with search frictions.
- Developed the Diamond-Mortensen-Pissarides model, the cornerstone of modern labor economics.
- Served as the Ida C. Cook Professor of Economics at Northwestern University for over forty years.
- His research provided the theoretical basis for evaluating the impact of unemployment insurance on job search behavior.
Did You Know?
He earned his PhD in economics from Carnegie Mellon University in 1967.
Mortensen was a fellow of the Econometric Society and the American Academy of Arts and Sciences.
He grew up in Enterprise, Oregon, and initially studied economics at Willamette University.
The model he helped create is often referred to simply as the 'DMP model' in economic literature.
“Unemployment is a waste of resources. The unemployed are willing to work, and there are firms that would like to employ them, but they can't get together.”
