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23 Cards in this Set
- Front
- Back
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Unemployment Rate
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#U/LF x 100
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labor Force participation rate
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LF/adult pop. x 100
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Adult Pop.
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E+U+NILF
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Labor Force
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E+U
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Men and Woman LFPR change
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Men have decreased in the labor force while woman have been increasing
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Problem 1 of U data
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People have incentives not to reveal they work (should be counted as employed but aren’t)
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Problem 2 of U data
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Some classified as U should be categorized NILF
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Problem 3 of U data
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Discouraged Workers: individuals who would like to work but have given up looking for a job (NILF who should be U)
the omission of discouraged workers likely understates the unemployment rate by about 1/2 percentage point (.5%) |
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Problem 4 of U data
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Underemployed
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Problem 5 of U data
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No distinction between FT & PT
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Duration of U
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Most spells are short...but most observer U is long term which accounts for the economys problem
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Frictional U
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Searching for the best job
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Structural U
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occurs when there are fewer jobs than workers
usually longer-term -Min. Wage -Unions -Efficiency Wages |
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Historical Reason for Min. Wage
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Bacon Act of 1931
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union insider
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workers who remain employed, they are better off
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union outsider
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workers who lose their jobs, they are worse off
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Efficiency Wage reason 1
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Worker Health
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Efficiency Wage reason 2
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Worker Turnover
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Efficienct Wage Reason 3
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Worker Quality
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Efficiency Wage reason 4
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Worker Effort
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Against Unions
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Unemployment...Cartels...Outdated
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For Unions
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Firms are more responsive to workers...better wages and benefits
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Prevailing Wage
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Wages Set by the government for government jobs...payed for by taxpayers
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