Lecture 8 Unemployment.pdf - International Labour Markets Spring 2018 Peter Jensen Department of Economics and Business Aarhus University Unemployment

Lecture 8 Unemployment.pdf - International Labour Markets...

This preview shows page 1 - 6 out of 14 pages.

1 International Labour Markets Spring 2018 Peter Jensen Department of Economics and Business Aarhus University Unemployment Literature: Chapter 14 in “Modern Labor Economics” How is unemployment defined and measured? What are the causes of unemployment? How can unemployment be reduced?
Image of page 1
2 Definition of unemployment The population can be divided into those people who are in the labor force (L) and those who are not (N) The labor force consists of those employed (E) and those unemployed (U) The unemployment rate (u) is defined by u = U/L where L is the number of people in the labor force U is the number of unemployed people Definition of unemployment The concept of unemployment is typically defined in terms of the willingness to take a job at the prevailing market wage Government statistics of unemployment typically defines unemployment by requiring “active search for work” In addition to the unemployment rate, the employment rate also provides useful information about the labor market
Image of page 2
3 Unemployment and employment rates A stock-flow model We can think of a pool (or stock) of unemployed persons, but this stock is constantly changing Focusing only on the stock masks the highly dynamic nature of labor markets Unemployment rates are affected by layoffs and quits, new hires and recalls, and retirees from and new entrants into the labor market As these flows change relative to each other, the unemployment rate changes
Image of page 3
4 A stock-flow model Sources of unemployment
Image of page 4
5 Types of unemployment We will examine four different types of unemployment Frictional unemployment Structural unemployment Cyclical unemployment (demand-deficient) Seasonal unemployment Frictional unemployment
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 14 pages?

  • Winter '18

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors