Lecture 7 8

Lecture 7 8 - s – is the fraction of employed workers...

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Simple Dynamic Model of Unemployment ) ( U L s bL E + = Total Entry into Unemployment is: Where: L - is the labor force b – is the labor force entry rate (e.g. births), so bL is the total number of people entering the labor force (and therefore entering unemployment)
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Unformatted text preview: s – is the fraction of employed workers that become separated from their jobs. s is called the rate of job separations. So s(L-U) is the number of people who lose their job in a period....
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