Ch.06Unemployment.pptVIP

* Figure 6-3 on p.162. Abbreviation: “eq’m” equilibrium * * * * Teens and single mothers are more likely to be in minimum wage jobs than workers from other demographic groups. These data show that these groups experienced higher unemployment after the minimum wage was raised in September 1996. These increases are not due to aggregate shocks, as the overall unemployment rate was the same in both periods. * See p.165 for more discussion about insiders and outsiders. * These data show that union workers and non-union workers represented by unions earn about 18% more than non-union workers in the same industry. Also, there is a positive correlation between the proportion of workers in unions or covered by union contracts and the wage ratio the correlation equals 0.5 . Before revealing the “U % of total” column, you might ask your students which of these industries they think are most heavily unionized. source: Bureau of Labor Statistics Key to columns: 2. “U % of total” number of union members as a % of total # of employed workers. 3. “RBU % of total” number of nonunion workers represented by a union as % of the total # of employed workers. 4. Wage ratio 100 times X/Y, where X is a weighted average of the mean weekly earnings of union RBU workers, Y is the mean weekly earnings of nonunion workers in the industry.  The weights in X are the number of union RBU workers . The last row gives data for all workers in the industries shown. The table omits data for the agriculture industry; there were fewer than 50,000 union workers in agriculture, so the BLS did not report average weekly earnings for union workers in agriculture. * * Source: Bureau of Labor Statistics and author’s calculations. How to interpret this data: The second column shows the percentage of all unemployed workers whose spell lasted the number of weeks shown average over January 1993 to May 2002 . The number in the third column is a ratio. The denominator