PPT301ch6-8-1 copy - The labor market IS-LM model of last section was based on 3 simplifying assumptions Only 2 kinds of markets were considered We now

PPT301ch6-8-1 copy - The labor market IS-LM model of last...

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Blch6 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?
Blch6 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)
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Blch6 6 N 127 U 7 NL 66.7 1.5 - 1.8 - 1.7 - 1.5 - 1.3 - 1.1 -
Blch6 7 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?