MGEB06H3 Lecture 6: Ch6-Unemployment-slides(1)
20 Jan 2018
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Duration of unemployment equals the average length of time a person remains unemployed. S the organization of the labour force; the demographic make-up of the labour force; the availability of u benefits; and the desire of some unemployed to continue to search for jobs (cid:149) Frequency (incidence) of unemployment which equals the average number of times, per period, that a worker becomes unemployed. The variability of the demand for labour across different firms; and. The rate at which new workers enter the workforce. (both depend on sr & lr factors) (cid:149) These two sets of factors determine the natural rate of unemployment. Since these factors change over time so does the natural rate.
