This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Chapter 6 20:19 Frictional Unemployment 1. Sectoral shifts 2. Immobility of labor Europe language barrier US (now) home owners cannot leave their homes 3. Career Changes optional though if you dont like your job you should leave b/c youll do a worse job Public Policy higher job finding 1. Retraining workers higher job finding 2. Community colleges higher job finding 3. Unemployment insurance lower job finding 37% of jobs qualify 50% pay for 26 weeks Denmark unemployment insurance 95% pay for 5 years Structural unemployment The unemployment that results from the failure of wages to adjust and equilibrate -caused by wage rigidity minimum wage 2:1 women 5:1 young 5:1 part-time 2.7% affected 1. min wage laws - mandated 2. unions and collective bargaining - mandated insider/outsider 3. efficiency wages optional...
View Full Document