ch07 Unemployment, Inflation, and LongRun Growth.pptVIP

Prepared by: Fernando Quijano Shelly Tefft;;employed Any person 16 years old or older (1) who works for pay, either for someone else or in his or her own business for 1 or more hours per week, (2) who works without pay for 15 or more hours per week in a family enterprise, or (3) who has a job but has been temporarily absent with or without pay.;not in the labor force A person who is not looking for work because he or she does not want a job or has given up looking.;Unemployment;TABLE 7.1 Employed, Unemployed, and the Labor Force, 1950–2009;TABLE 7.2 Unemployment Rates by Demographic Group, 1982 and 2010;TABLE 7.3 Regional Differences in Unemployment, 1975, 1982, 1991, 2003 and 2010;discouraged-worker effect The decline in the measured unemployment rate that results when people who want to work but cannot find jobs grow discouraged and stop looking, thus dropping out of the ranks of the unemployed and the labor force.;As women began joining the labor force in greater numbers in the 1970s and 1980s, their wages relative to men’s wages actually fell. Most economists attribute this decline to the fact that less experienced women were entering the labor force, pointing out the importance of correcting for factors such as experience and education when we analyze labor markets. If you are interested in learning more about the economic history of American women, read the book Understanding the Gender Gap: An Economic History of American Women by Harvard University economist Claudia Goldin.;TABLE 7.4 Average Duration of Unemployment, 1970–2009;When we consider the various costs of unemployment, it is useful to categorize unemployment into three types:;frictional unemployment The portion of unemployment that is due to the normal turnover in the labor market; used to denote short-run job/skill matching problems.;The costs of unemployment are neither evenly distributed across the population nor easily quantified. The social consequences of the Depression