4-17 - fewer quits training employee relations(good HR...

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Unemployment continued… I. Search - Evidence Experiment 1: Bonus Experiment If you find a job before using 11 weeks of benefits, then you get $500 bonus. After 11 weeks, you’re no longer eligible for bonus. Results: Duration of UI receipt decreased Probability of applying for benefits increased. No clear effect on the cost of UI Experiment 2: Search monitoring experiment Experiments had to provide names of 2 employers they talked to each week Contracts – nothing Results: Duration of UI receipt decreased Probability of applying for benefits: no change Effect on program cost: decrease Mcost2 Mcost1 Mbenefit Duration of unemployment - Problem Example from old exam: teenage unemployment Mcost1 Mcost2 Mbenefit Duration of unemployment Or benefit curve shifts out
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Mcost1 Mbenefit 2 Mbenefit1 Duration of unemployment - Employer search You can either search extensively (talking to a lot of people) or talking intensively (screening criteria comes into this) Other options employers have: - Paying high wages - then workers line up to get jobs
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Unformatted text preview: - fewer quits - training- employee relations (good HR functions)- fewer quits- referrals II. Types of Unemployment: Explaining youth unemployment A. Frictional- higher among young 1. One reason why young people may have high frictional unemployment is that young separate from jobs more often. If you’re purpose for taking a job is for non-necessary commodities (e.g. paying for a luxury item), you’re going to be in the job market more often. Teens are 13 times more likely to move from being employed to unemployed than adults 2. Another reason: ineffective job search – haven’t figured out how to go through an interview, dress for it, fill out for job application. 3. Unemployment insurance? 4. parent (reduce cost of search) B. Demand deficient- when markets don’t clear: Process of creaming – picking out best workers and paying them high wages wage S rigid wage D1 D2 <unemployed> Q of labor Special minor minimums Minimum wage C. Structural...
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4-17 - fewer quits training employee relations(good HR...

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