MacroLaborMarketAnalysis(宏观经济学南开大学,龚刚)教案.pptVIP

Macroeconomics Lecture 8 Labor Market Analysis I. Introduction The objective to study how employment and thus unemployment is determined in the labor market. II. The Natural Rate of Unemployment (NAIRU) The natural rate of unemployment It is the unemployment rate at which the economy is at equilibrium (or at its general state). Sometimes, it is also called the NAIRU, standing for the Unemployment of Non-Accelerating Inflation Rate. II. The Natural Rate of Unemployment (NAIRU) The natural rate of unemployment (continued) Associated with NAIRU is the natural level of employment and the natural level of output (may also called the full-employment output). Associated with NAIRU, there is also a natural rate of growth. II. The Natural Rate of Unemployment (NAIRU) Empiric NAIRU U.S. European China II. The Natural Rate of Unemployment (NAIRU) The Importance of NAIRU. Generally, it is the objective a government should pursue. In other words, a government may not consider unemployment as being a problem if the unemployment rate is equal to or below its natural rate. II. The Natural Rate of Unemployment (NAIRU) The determination of NAIRU Generally, it is believed to be determined by the institutional factors such as the welfare policy of the government the structural of information transmission the industry concentration the power of labor union Others How about in China? III. Neoclassical Theory of Employment Employment supply determined by the household’s optimization decision regarding the choice of consumption and leisure This decision problem gives rise to the following supply curve of employment. III. Neoclassical Theory of Employment Employment supply (continued) III. Neoclassical Theory of Employment Demand for employment determined by firm’s production decision (optimization). Optimization condition: W=MPL（Ld，…) from this optimization condition, we can derive demand curve for employment. III. Neoclassical Theory of Employment Demand for employ