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Questions tagged [unemployment]

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Technological unemployment

I am doing a project on technological change in the job market, that is the substitution of routine occupations and increasing demand for high-skilled jobs. I have done some research on this and now I ...
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Positive Phillips Curve

I am doing some research for a class project for Phillips curve of countries. For a certain country that I am doing, I am getting a slope for the Phillips curve to be positive. Is this possible? ...
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If someone stays at home because they can't find the type of job they want, are they included in unemployment numbers?

Say someone is looking for a job, but the ones they can find either don't give them the right compensation (businesses pay them too low) or is not the type of work they're looking for. So they stay at ...
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How is there full employment level at equilibrium level according to Keynesian theory(AD-AS approach)?

According to Keynesian theory :- Equilibrium level is the point at which Aggregate Demand curve intersects Aggregate Supply curve . And this point is termed as Full Employment Level How do we ...
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How is employment related to aggregate demand and aggregate supply?

When we talk about excess or deficient aggregate demand , how does employment suddenly comes ?
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42 views

Why do stricter emission limits cost jobs?

I live in Germany and as most people know the car industry is very important in our country. Currently, there is a discussion about stricter emission limits for cars in the European Union. The car ...
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5answers
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Why do firms losing money almost always reduce labor costs via layoffs instead of pay cuts?

At least in the United States, firms seem to almost always reduce labor costs via layoffs rather than pay cuts. Pay cuts are so rare that they're literally headline news. From an economic standpoint, ...
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2answers
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Is Debt Monetization Equivalent to transferring money from rich to poor?

I'm reading Ray Dalio's "How the Economic Machine Works", and he says that there are four factors contributing to deleveragings in economies: 1) Debt Reduction 2) Austerity 3) Transferring wealth ...
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142 views

Does immigration help to sustain welfare in rich European countries?

There is a lot of discussions about immigration and its effect on economies lately in Europe, so I'd like to ask a question. Is it true that immigration helps to sustain welfare in rich European ...
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1answer
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US unemployment data release date

Using the CSV file provided by St. Louis Fed (which is based on the data series LNS14000000 from the Bureau of Labor Statistics) I noticed that the date is always the first day of each month for the ...
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1answer
74 views

Labour Market: simple macroeconomic modeling

I just started reviewing macroeconomic modeling for an upcoming entry exam, and I'm not sure about my answers in this application: Suppose that the economy of a country has a representative firm ...
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1answer
119 views

Expectation augmented Phillips Curve

Currently studying Intro to Macroeconomics, and faced Expectations augmented PC. In my textbook it is not clear how expected inflation affects unemployment. My view so far, is that expected inflation ...
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Why is Canada's unemployment rate higher than that of the US, UK, Germany and the Netherlands?

Current unemployment rate in Canada is about 5.8% while countries such as the US, UK, Germany and the Netherlands have unemployment rates well below 5%. In addition, the current unemployment rate in ...
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The Shapiro-Stiglitz model. Why under full employment do unemployed workers find jobs instantly?

Under the Shapiro-Stiglitz model the No-Shirking Condition is: $$w=\bar{e}+\left( \rho +\frac{\bar{L}}{\bar{L}-NL}b \right)\frac{\bar{e}}{q}$$ Where: $\bar{e}=$ exerted effort by employees $\rho=$ ...
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2answers
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A confusion regarding search and matching model in Pissarides's “Equilibrium Unemployment Theory” book

I was studying chapter 1 of the book "Equilibrium Unemployment Theory" and I got confused about the way Pissarides has defined the probability of a firm not finding a worker in a short time interval $...
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1answer
94 views

Unemployment. What is the source of income?

In USA, more than 1 in 5 persons in working age are unemployed (that includes people looking for jobs, and also the ones not looking for jobs, so is not just the officially unemployed population). ...
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1answer
79 views

Can Okun's Law be used for forecasting?

Can one forecast $\Delta Unemployment$ and $\Delta Inflation$ using a VAR model based on Okun's law?
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2answers
52 views

Relation $\Delta Unemployment$ and $\Delta GDPgrowth$

I have studied the development of the difference in unemployment and the difference in the growth of real GDP in the Netherlands over the years 1963-2016. From the picture it seems like a change in ...
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0answers
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Estimating Job Vacancy rate empirically

I'm currently reading up on matching models in terms of their ability to describe frictional unemployment, they generally follow a cobb-douglas form. $$M(u,v)=m=\mu u^\alpha v^{1-\alpha}$$ Where $M(...
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1answer
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Okun's law nominal GDP growth

Does Okun's law also work for nominal (not real) GDP growth?
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Difference between frictional unemployment and seasonal unemployment

Julie spent the entire summer of 2007 working for a tree planting company in Central British Columbia. At the end of July, her contract ended because of weather conditions. She spent the month of ...
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1answer
83 views

What does it mean when the natural rate of unemployment is greater than the actual rate?

According to this graph: I just don't get when natural unemployment is greater than actual unemployment. Why is this the case?
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1answer
141 views

Testing the long run phillips curve / Contradicting empirical results?

I've been working with some historical macroeconomic data of the Canadian economy and am having difficulty empirically testing the Phillips curve long run and short run versions. I got the data from ...
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1answer
558 views

1929 stock market crash and unemployment rate

Thomas Sowell has repeatedly made the case that government intervention is largely responsible for the Great Depression. For example, he notes what happened with the unemployment rate in the months ...
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73 views

Why is it not possible to prevent sudden unemployment of thousands of people?

Why is it not possible to prevent sudden unemployment of thousands of people? Often one can observe, for example in news, that suddenly from one day to the other thousands of people of a company get ...
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2answers
216 views

What is the logic behind this sentence in Keynes's General Theory?

It seems hard for me to understand the underlying logic of this sentence in Chapter 2 of this book: They do not seem to have realised that, unless the supply of labour is a function of real wages ...
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0answers
70 views

Why does a reduction in regional differences in unemployment shift the Phillips curve?

According to this question below, apparently a reduction in the regional differences in the level of unemployment would shift the short run Phillips curve SRPC leftwards. The answer to the question is ...
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2answers
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How is workforce guaranteed in basic income system?

After reading an article on wiki and watching the Ted video on basic income system in a society and even M.Zuckerberg talks about it, nobody really addresses the issue of the workforce availability. ...
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1answer
152 views

Basic question on calculating unemployment rates

I would like to know if I have interpreted the following statement correctly and would be grateful of any help at all. "The unemployment rate for 16-24 year olds not in full-time education was 12.2%...
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1answer
122 views

How do I verify Philips curve empirically for recent years?

I wanted to verify the relationship between inflation and unemployment empirically, so I took data from the World Bank and used excel to correlate them. I got a very, very bad correlation between ...
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2answers
93 views

Minimum Wage effects on Adjacent Cities

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? Are there examples, studies or accepted practices to address: Difficulty staffing ...
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0answers
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How much does one percent of unemployment 'cost'? (Unemployment elasticity)

There is always debate that increasing minimum salary will pour in more money into the budget as those who get minimum salary will spend them immediately. The counter argument is that increasing ...
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0answers
31 views

Understanding the complex relationship between macro and micro economic factor: Job shift

As the world knows plenty of manufacturing jobs shifted from various countries to China. This macroeconomic trend of consolidating manufacturing jobs in China has been going on for past 30 years. ...
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1answer
53 views

Why does the Federal Reserve seem to hold so much weight on the unemployment rate, relative to labor participation?

The title is the question. In the press conference held yesterday, the Chair referenced "unemployment" 18 times, relative to "participation" 3 times. If the labor participation is at the lowest ...
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1answer
98 views

In what way is the labor participation rate useful for tracking unemployment?

I'm trying to do some research on unemployment and labor participation rate in the US to figure out what people are talking about. For instance, the Civilian Labor Force Participation Rate for Sept ...
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2answers
76 views

Why is matching function increasing in arguments?

In matching theory, the matching function $m_t=m(u_t,v_t)$, where $m_t$ is the number of matches(new hires) between unemployed looking for work($u_t$) and vacancies($v_t$). This matching function is ...
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1answer
124 views

Would a Job Guarantee impact Cost of Living?

What effect would a job guarantee, a method of achieving full employment often suggested by modern monetary theorists, have on the cost of living? In the case of student loans offered by the ...
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3k views

Change in the way unemployment is calculated in the US?

In the last 8 years has their been a change in the way unemployment is calculated? Is there a nuance that has changed in the polling info? Many of my right wing comrades claim the Obama administration ...
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3answers
2k views

How does an increase in the price of “non-wage-goods” increase employment?

Keynes (1936, Chapter 2) says that based on the classical theory, "there are only four possible means of increasing employment", the fourth of which is: an increase in the price of non-wage-goods ...
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1answer
66 views

How do the wages affect the employment

If we have a condition where employment is lead by the wages does it mean that a wage reduction will cause unemployment?
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2answers
103 views

UK unemployment for July 2016

Why was the UK unemployment rate in July 2016 lower than forecasted by the Bank of England?
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3answers
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Why protectionism is bad?

can you please explain from the economic point of view, why protectionism is bad? If sometimes it is sensible to protect some industries to avoid unemployment, loses of some professionals, death of ...
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0answers
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Decentralization of business due to internet/mass communication, or mere bosses-at-a-distance?

Excuse my question if it sounds brutish and uneducated but I'm curious about the recent trend of businesses like Uber, Google Play Store, Apple Store, possibly even Craigslist (et al) which are more ...
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1answer
336 views

Why are there so many migrants in the modern world?

I want to ask you if there is an explanation in your science of why there are so many migrants in the modern world? I live in Russia, and after the dissolution of the USSR a lot of people here had ...
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2answers
708 views

Why does immigration boost the economy? (or does it not…?)

I'm a novice at macroeconomics, and trying to understand the effect of immigration (from developing nations) on the economy of a developed nation. Specifically, I am considering the effect when the ...
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0answers
25 views

Will interest rates still hike even after a weak jobs report?

Has this happened before in the past? A weak jobs report and a hesitant economy followed by a federal rate hike to control inflation? Thank you to all.
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1answer
46 views

Is there a change over the business cycle in how much of economic activity is market-based?

Out of the total production in an economy, a big part is market-based, as when you make something and sell it. But a big part is not, as when you make something and don't sell it, but exchange it or ...
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1answer
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How can we measure the size of the new uber-driver-type economy?

Uber has probably hundreds of thousands of drivers just in the US. There are many other gig economy firms growing quickly, not only lyft, but also Amazon Prime, bite squad, etc. Is there some place in ...
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1answer
43 views

How to distinguish Full-time (FT) employment and Part-time (PT) employment when calculating employment rate?

Which of the following is true for the Canadian labour force data for June, 2015, for unemployment, Full-time (FT) employment, and Part-time (PT) employment? A) Unemployment fell because FT ...
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0answers
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Is America economy, Connecitcut's economy, and the global in general recovering and better than the year 2008?

Please answer all three if you can. I live in Connecticut, America, and of course global trade and economies matter as we are becoming more global from technology. December 2007 the markets ...