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14 Cards in this Set
- Front
- Back
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Working age population
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total number of people age 16 and over not in jail, hospital or other institutional care
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Labor force:
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number ppl employed plus number unemployed
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You are employed if...
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you worked atleast 1 hour as paid employee or worked 15 hours or more as unpaid worker in family business
Were not working but had jobs or businesses from which they were temporarily absent |
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Unemployed if
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Had no employment
Were available for work And either Had made specific efforts to find employment some time during previous 4 weeks were waiting to be recalled to job from which had been laid off. |
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Two main labor market indicators:
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THe unemployment rate
labor force participation rate |
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Unemployment rate:
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% of people in the labor force
=#ppl unemployed/Labor force X100 discouraged workers dont count |
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Costs of unemployment
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If ppl not workign that is forgone output (okuns law=1%on unemp rate=2%lost output)
Psychosocial costs Dynamic costs |
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If business improves then...
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Increased ouput per worker hour (increased productivity)
Hours per workweek increase Increae in number ppl employed |
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Types of unemployment
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Frictional, cyclical, and structural
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What is frictional unemployment
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Arises from normal labor turnover, people entering and leavignlavor force from ongoing creation and destruction of jobs
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What is Structural unemployment
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arises when changes in technology or international competition change the skills needed to perform jobs or change locations of jobs
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What is cyclical unemployment?
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The fluctuating unemployment over the business cycle. This increases during recession and decreases during an expansion
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Full employment
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When there is no cyclical unemployment or when all the unemployment is frictional and structural
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Natural unemployment rate
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When unemployment rate is at full employment
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