Popular in Intermediate Macroeconomics
Popular in Economics
This 2 page Class Notes was uploaded by Hope Johnson on Monday September 26, 2016. The Class Notes belongs to Econ 202 at Rhodes College taught by Dr. Gramm in Fall 2016. Since its upload, it has received 3 views. For similar materials see Intermediate Macroeconomics in Economics at Rhodes College.
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Date Created: 09/26/16
Labor Force Wednesday, September 7, 2016 2:04 PM Adult pop: (Ages 16+ , 253.620 million Americans) - Labor force (have a job or actively looking) 159.287 million ○ Employed 157.517 million ○ Unemployed 7.77 million - Not in the labor force - 94.333 million How do you know if someone is actively looking for work? Half the time, a fired person goes back into the labor force. The other half , that person will remain unemployed. Discouraged Workers - who would like to work, but have given up looking for a job. Why is there unemployment? 1. UR varies with the business cycle. 2. Cyclical unemployment a. South did not achieve the north's standard of living until 19..60s? b. Textile firms opened up in the south in search for cheap labor. Very little machines, lots of labor demand. This resulted in the fist boom of economic growth in the rural south. **minimum wage argument** 3. Unions (acting as a cartel) are able to produce wages above the EQ rate a. Cartel is a group of sellers acting together in hopes of exerting joint market power. b. Through the threat of strike, they can push wages above EQ and in some ways control the hiring process. c. Anti-trust exempt 4. Efficiency Wages- above equilibrium wages 5. Increase in technology a. Structural Employment: long term/chronic (7+ week unemployment). Arises from balances between skills and other characteristics of workers and the needs of employers 6. Job Search - frictional unemployment is short term and is the matching process of which workers search for suitable jobs and firms search for suitable workers. economic growth (chapter 8 ) unemployment). Arises from balances between skills and other characteristics of workers and the needs of employers 6. Job Search - frictional unemployment is short term and is the matching process of which workers search for suitable jobs and firms search for suitable workers. economic growth (chapter 8 ) - Why are some countries rich and some countries poor? - Productivity - quantity of G & S produced over time ○ Physical capital - stock of equipment and structure used to produce it. ○ Human capital- Knowledge/skills workers acquire through education, training and experience. ○ Argument that development is aiding human capital ○ Natural resources - sufficient but not necessary ___ for productivity. ○ Technological Knowledge - society's understanding of the best way to produce goods & services. Unemployment rate = #unemployment /# in labor force U rate = 4.9% Labor force participation rate = Labor force / Adult pop LFP = 62.8%
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