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What is the reason for the U3 rate being the more popularised and widely emphasised measure of unemployment in the United States and also for other developed economies? Historically, data for U-3 have been collected for longer than U-6. For example, in the US, the former have been collected since 1948, while the latter only since 1994. So, it is "...


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There are lots of different people unemployed, and the answer will be different depending on the person. In your prostitute example, if you left your medical assistant job because prostitution paid more, then it's frictional, because there are lots of medical assistant jobs, but it might take you time to go through the interview process and be onboarded. If ...


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Unless I misunderstand the question these seem to be complementing events with probabilities $p$ and $1-p$.


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The economy is not a zero sum game with a fixed number of jobs available. If it were, then restricting immigration or at least the access immigrants have to jobs would unambiguously benefit domestic workers. However, H1B immigrants, in particular, are frequently skilled workers that increase the productivity of the companies they work for, creating ...


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Quarterly GDP seasonally adjusted source: https://aneconomicsense.org/category/econ-data/gdp-productivity/ AnEconomicSense.org by Frank Lysy Monthly unemployment rate seasonally adjusted Source: https://www.researchgate.net/figure/Seasonal-adjustment-of-US-unemployment-using-the-defaults-of-seasonal-The-result-is_fig2_329822239 by Christoph Sax and ...


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To get things started: The reservation wage is the wage that makes the worker indifferent between taking a job and getting V_e and not taking a job and getting V_u. To find it, solve for the value of w that makes V_e = V_u. Solving the entire model is not possible given the info you provided. You need the block that describes the firms. My sense is that it ...


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That's reported in A-38 under "not in the labor force" but "want a job" and "did not search for work in the previous year". The line/figure doesn't have a U-style indicator.


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The issue is how we can decompose changes in unemployment into frictional, structural, cyclical, and seasonal. The question has been updated to include the source for the definition of “structural” unemployment. However, I do not have access to that text. There is nothing in the definition that allows us to calculate “structural unemployment” (nor the other ...


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I agree that the current crisis will not “break” the unemployment insurance system. The most that will happen is payments will stop being issued to those who qualify. History of unemployment insurance (UI) program Created in 1935, the federal-state unemployment insurance (UI) program temporarily replaces a portion of wages for workers who have been laid ...


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Data on employment usually comes out a month or two (sometimes a year) after the reference period. The Bureau of Labor Statistics (https://www.bls.gov/) puts out data on employment (who is working right now) but to see the effects of our current crisis will take time to show. Here are some links to the employment data that the BLS produces: National ...


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Cyclical unemployment $U^C$ is by definition difference between actual observed rate of employment $U$ and the natural rate of employment $U^N$ so we have: $U^C_t \equiv U_t-U_t^N$, see for example this paper. Hence cyclical unemployment can be negative if actual observed rate of unemployment is lower than natural rate, because it is defined as a difference ...


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I believe this is generally true in the US, and I'll offer at a few reasons that are sometimes suggested here. Women are more likely to go to college than men, and colleges tend to be located in higher productivity areas. Women are more likely to live and work in cities (a majority in 81 of the 100 largest cities but a majority in only 58 percent of small ...


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With regards to the concept of 'unemployment' and the 'unemployment rate' it is important to note that, while the general definition (number of unemployed /number labor force * 100) is pretty standard, the exact parameters or "operational criteria", in ILO-speak, for how some of these concepts are defined can vary from place to place, often with large ...


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