1

2

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3
Additional labor statistics
•
Broken down by
– Age group
– Skills - education levels
– Race and sex
•
Is there a dual labor market based on level
of education?

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4
Stock versus flow statistics
•
The flows offer a better illustration of the actual
situation in the labor market
•
The same unemployment rate could correspond to
–
–
i.e. a very
versus a
labor market
•
The flow data are collected in the Current
Population Survey
(average monthly data 94-
99)

5

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6
N
127
U
7
NL
66.7
1.5 -
1.8 -
1.7 -
1.5 -
1.3 -
1.1 -

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Further statistics based on flows
•
Monthly flows in and out of U
INTO
from N
from NL
Total
Pool in U
U
1.5
1.1
2.6
7
OUT
to N
to NL
Total
OF U
1.8
1.3
3.1
•
Probability of unemployed leaving U each month:
•
Probability of unemployed finding a job each month:
•
Average duration of unemployment:

8
Problem #2Using the information of the chaptera.Calculate the size of the flows in and out of N(employment) as a percentage of N (per month)
b.Calculate the size of the flows from U to N as apercentage of U (per month)

9
c.What is the size of the total flows out of U as apercentage of U (per month)?
d.What is the size of the total flows in and out of Las a percentage of L (per month)?

10
e.What percentage of the flows is due tonew workers entering the labor force?

11
.
•How does a firm contract when Y (demand) drops?