Unemployment

UnemploymentUnemployment


Unemploymentin practice

Unemploymentin practice

Unemployment rates in selected industrial countriesUnemployment rates in selected industrial countries

UK

0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)

UK

0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)


0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)

UK

France


0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)

UK

France

Germany


0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)

UK

France USA

Germany


0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)

UK

France USA

Germany Japan


UK

France USA

Germany Japan

OECD

0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

Une

mpl

oym

ent (

% o

f wor

kfor

ce)


Standardised unemployment rates in different sectors of the labour market (2002)

Standardised unemployment rates in different sectors of the labour market (2002)


Equilibrium unemployment


Equilibrium unemploymentEquilibrium unemployment

O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ADL

We

ASL

e

Qe

Q2QeO

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ASL

ADL

We

N

e d

Equilibrium unemploymentEquilibrium unemployment



The average durationof unemployment


The average durationof unemployment

O

Wag

e ra

te

Period of search

t l

Wage rate offered (Wo)

Wage rate acceptable to worker (Wa)

Average duration of unemploymentAverage duration of unemployment


Disequilibrium unemploymentDisequilibrium unemployment

O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ASL

ADL

We

W2

Disequilibrium unemploymentDisequilibrium unemployment

Q2 Q1

B A


Disequilibrium unemploymentDemand-deficient

unemployment

Disequilibrium unemploymentDemand-deficient

unemployment

ADL 2

O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ADL 1

W1

Q1Q2

W2

ASL

Demand-deficient unemploymentDemand-deficient unemployment


Equilibrium and disequilibrium unemployment

Equilibrium and disequilibrium unemployment

Equilibrium and disequilibrium unemploymentEquilibrium and disequilibrium unemployment

O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ADL

We

e

Qe

ASL

O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ASL

ADL

We

W2

b a

e

Disequilibriumunemployment


O

Ave

rag

e (r

ea

l) w

ag

e ra

te

No. of workers

ASL

ADL

We

W2

b a

e

N

c

Equilibriumunemployment

Disequilibriumunemployment


Unemployment

Documents

Transcript of Unemployment