CHAP06Unemployment培训资料.pptVIP

Chapter Summary 5. Behavior of the natural rate in the U.S. rose from 1960 to early 1980s, then fell possible explanations: trends in real minimum wage, union membership, prevalence of sectoral shifts, and aging of the Baby Boomers * CHAPTER 6 Unemployment Finding the “equilibrium” U rate f ×U = s × E = s × (L – U ) = s × L – s × U Solve for U/L: (f + s) × U = s × L so, * CHAPTER 6 Unemployment Example: Each month, 1% of employed workers lose their jobs (s = 0.01) 19% of unemployed workers find jobs (f = 0.19) Find the natural rate of unemployment: * CHAPTER 6 Unemployment Policy implication A policy will reduce the natural rate of unemployment only if it lowers s or increases f. * CHAPTER 6 Unemployment Why is there unemployment? If job finding were instantaneous (f = 1), then all spells of unemployment would be brief, and the natural rate would be near zero. There are two reasons why f 1: 1. job search 2. wage rigidity * CHAPTER 6 Unemployment Job search frictional unemployment frictional unemployment: caused by the time it takes workers to search for a job occurs even when wages are flexible and there are enough jobs to go around occurs because workers have different abilities, preferences jobs have different skill requirements geographic mobility of workers not instantaneous flow of information about vacancies and job candidates is imperfect * CHAPTER 6 Unemployment Sectoral shifts def: Changes in the composition of demand among industries or regions. example: Technological change more jobs repairing computers, fewer jobs repairing typewriters example: A new international trade agreement labor demand increases in export sectors, decreases in import-competing sectors These scenarios result in frictional unemployment CASE STUDY: Structural change over the long run 1960 2006 * CHAPTER 6 Unemployment More examples of sectoral shifts Industrial revolution (1800s): agriculture declines, manu