MacroEcon Lecture Unemployment

MacroEcon Lecture Unemployment - 10/21: minimum...

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10/21: minimum unemployment rate 4% political instability- high unemployment (ex: Germany- Hitler took over) the moment the actual unemployment rate increases- lose wealth biggest cost: loss of wealth: we cant produce the maximum wealth Types of unemployment that affects: government looks at unemployment: ideally supposed to look at under the statistics and tries to identify the groups of the labor force to see which has the highest unemployment rate (target groups of population that has highest unemployment rate) White collar workers vs. Blue collar workers: which group gets hit worse during unemployment? Blue collar- higher unemployment (statistics); 2 factors - reason 1: if youre an employer and you have 10 white collared worker and 50 blue collar worker and if you lay off some blue collar worker and the economy gets better you can rehire them (there’s many of them); but if you have a skilled mba white collar worker it’s hard to rehire them Reason 2: good percentage of blue collared workers work at industries called “Consumer Durables” Consumer Durables: cars, houses, electronics- things that last a long time
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This note was uploaded on 12/13/2011 for the course ECON 8732 taught by Professor Kitsikopoulos during the Fall '11 term at NYU.

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MacroEcon Lecture Unemployment - 10/21: minimum...

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