Lecture 3(2) - ECOS3008 LABOUR ECONOMICS Week 3 15 March 1 Australian evidence on Gross Flows(pp 84-7 RD S conclusions(on p 84 of text(i relatively

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ECOS3008 LABOUR ECONOMICS Week 3: 15 March 1
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Australian evidence on Gross Flows (pp 84-7) (i) relatively small net monthly changes in stock levels were generated by relatively large gross flows (ii) flows across the labour force boundary were much larger than flows within the labour force 2
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Australian evidence on Gross Flows (pp 84-7) employment turnover (the percentage of persons leaving employment ) * unemployment turnover (percentage of persons leaving unemployment ) * . 3
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Australian evidence on Gross Flows (pp 84-7) 40% of persons in U were not unemployed one month later as length of U spell increase, probability of leaving decreases significantly .. 4
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on p 84 of text on p 84 of text): (i) variations in unemployment across demographic groups are associated: * strongly with variations in the inflow rate to unemployment, but * not at all with variations in the unemployment duration (ii) bulk of unemployment is involuntary (iii) important to distinguish between .. 5
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Total unemployment : aggregate number of weeks of unemployment experienced by unemployed individuals In 2000: 32% of total unemployment is attributed to 5% of unemployed individuals In 2010: 79% of total unemployment is attributed to 21% of unemployed individuals .. 6
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Is Unemployment Voluntary? by more recent data from May-June 2010: 37% of those in U in May were not in U in June 21% of U were in long-term U 79% of total U attributed to the LTU Source: previous slides 7
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Measuring Unemployment Two Questions: 1. Is Official Unemployment an accurate indicator of unemployment? 2. Is Unemployment an accurate indicator of the level of underutilisation of labour? Need to consider: Hidden unemployment Persons not in the Labour Force Marginal Attachment 8
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Hidden Unemployment (HU) ABS unemployment figure doesn’t capture ‘unemployed’ people who are not actively looking for paid work but who would actively seek work if they felt that there was a reasonable possibility of finding a job. HU is a common response to either (past) . . (future) . . 9
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Who Are the Hidden Unemployed? unemployed who stop searching, school-leaver who returns to school, mother who delays return to the labour market, older worker made redundant and retires early. The above . . 10
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All of these workers would seek work if it were more readily available but are not in the official workforce because of the limited availability of jobs. They are the hidden unemployed
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This note was uploaded on 08/22/2011 for the course FINC 2011 taught by Professor Craigmellare during the Three '10 term at University of Sydney.

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Lecture 3(2) - ECOS3008 LABOUR ECONOMICS Week 3 15 March 1 Australian evidence on Gross Flows(pp 84-7 RD S conclusions(on p 84 of text(i relatively

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