WorkFacts2011A

WorkFacts2011A - Econ145.WorkFacts2011A John Pencavel...

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Econ145.WorkFacts2011A John Pencavel MARKET WORK - EMPIRICAL REGULARITIES The monthly Current Population Survey (CPS) categorizes someone as employed if (1) he or she did any work for pay or profit during the survey reference week (2) he or she did at least 15 hours of unpaid work in a family-owned enterprise operate by someone in the household (3) all who were temporarily absent from their regular jobs because of illness, on vacation, involved in an industrial dispute, prevented from working by bad weather, caring for a member of the family or friend People are categorized as unemployed if they do not have a job, but they have looked for work in the previous four weeks and are available for work. The labor force = the employed + the unemployed. Those not employed and not looking for work are categorized as “not in the labor force”. Because people may be involved in more than one activity (e.g., at work and also looking for a new job) and because people are counted once and only once, in categorizing people, a system of priorities is used: employment takes precedence over looking for work; labor force activities take precedence over non-labor force activities.
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2 U.S. Population and Labor Force in 2010 (thousands aged 16 years and over) Civilian noninstitutional population, P = 237,830 (“Civilian” = excl Armed Forces and “institutional population” (people in hospitals, penal & mental facilities & in homes for the aged). The civilian population represents about 97% of all 16+ years people.) Civilian labor force, L = 153,889 Civilian employment, E = 139,064 Civilian unemployment, U = 14,825 Not in the labor force = 83,941 (E/P), employment-population ratio = 139,064 / 237,830 = 58.5 % (L/P), labor force participation rate = 153,889 / 237,830 = 64.7 % (U/L), unemployment rate = 14,825 / 153,889 = 9.6 % all men women ages 16-19 White Black Hispanic *A s i a n E/P % 58.5 63.7 53.6 25.9 59.4 52.3 59.0 59.9 L/P % 64.7 71.2 58.6 34.9 65.1 62.2 67.5 64.7 U/L% 9.6 10.5 9.8 25.9 8.7 16.0 12.5 7.5 * Hispanic may be any race highest level of schooling attained (among those25 years and over) < HS diploma HS graduates, no college some college, no degree $ college graduates E/P% 39.4 55.3 61.9 73.1 L/P% 46.3 61.6 68.2 76.7 U/L% 14.9 10.3 9.2 4.7
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3 Market Employment of Hypothetical Population of Four abcd J a n1000 F e b 1000 M a r A p r M a y J u n e J u l y 1010 A u g S e p O c t1010 N o v D e c 1011 asked in April, “did you work for pay last month?”, one responds “yes” and three respond “no” so E/P = 1 / 4 = 0.25 average of monthly E/P = [(1/4) x (6/12)] + [(2/4) x (5/12)] + [(3/4) x (1/12)] = 0.40 fraction who work at any time in the year? = 3/4 = 0.75
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4 Because the CPS follows the same people for several months, movements among the states of employment E, unemployment U, and out-of-the-labor force N can be tracked from month to month of the same people. These are often called gross flows .
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This note was uploaded on 01/16/2012 for the course ECON 145 at Stanford.

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WorkFacts2011A - Econ145.WorkFacts2011A John Pencavel...

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