ECON 1202 Lecture Notes - Lecture 14: Ob River, Red Tape, Nairu
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Document Summary
Structural unemployment: two forces that drive it. Economic structure of the economy: long term mismatch between the skills and attributes of workers and the structure of demand or ob requirements the needs of employers. Long term persistent mismatches: low skill workers unable to obtain long term employment current jobs unable/little chance to acquire skills or transfer, reallocation of labor from industries shrinking to those growing. Institutional structure of the economy: labor market policies and practices. = low: us as young people can acquire new skills in these emerging markets, but not for the older population, structure of economy is changing, those people not hired even when economy is booming. Often, causes overlap and hard to disentangle: automobile workers, losing jobs, down turn in economy, substitution of capital for labor, technological change. Labor market policies: labor marked rigidity: creates rigidity in the labor market, actual policies within the labor market cause structural unemployment.
