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Chapter 16 Unemployment: Search and Efficiency Wages.

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Presentation on theme: "Chapter 16 Unemployment: Search and Efficiency Wages."— Presentation transcript:

1 Chapter 16 Unemployment: Search and Efficiency Wages

2 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-2 Figure 16.1 The U.S. Unemployment Rate, 1948–2003

3 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-3 Figure 16.2 Deviations from Trend in the Unemployment Rate and Percentage Deviations from Trend in Real GDP for 1948–2003

4 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-4 Figure 16.3 The U.S. Participation Rate, 1948–2003

5 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-5 Figure 16.4 Labor Force Participation of Women and Men

6 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-6 Figure 16.5 Deviations from Trend in the Participation Rate and GDP

7 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-7 Table 16.1 Average Unemployment Rates in OECD Countries, 1983-1996

8 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-8 Figure 16.6 The Welfare of an Employed Worker

9 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-9 Figure 16.7 The Reservation Wage

10 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-10 Figure 16.8 An Increase in the Unemployment Insurance Benefit b

11 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-11 Figure 16.9 An Increase in the Taxes on the Wage Income of the Employed

12 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-12 Figure 16.10 The Fraction of Unemployed Workers Receiving a Wage Offer Greater than w

13 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-13 Figure 16.11 The Determination of the Unemployment Rate U in the Search Model

14 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-14 Figure 16.12 The Determination of the Reservation Wage and the Unemployment Rate in the Search Model

15 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-15 Figure 16.13 An Increase in the Unemployment Insurance Benefit b

16 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-16 Figure 16.14 An Increase in the Job Offer Rate p

17 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-17 Figure 16.15 An Increase in Taxes on Labor Income

18 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-18 Figure 16.16 Taxes on Labor Income and Unemployment Benefits

19 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-19 Figure 16.17 Effort of the Worker as a Function of His or Her Wage

20 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-20 Figure 16.18 The Demand for Labor in the Efficiency Wage Model

21 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-21 Figure 16.19 The Ratio of Effort to the Real Wage

22 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-22 Figure 16.20 Determination of the Efficiency Wage

23 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-23 Figure 16.21 Unemployment in the Efficiency Wage Model

24 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-24 Figure 16.22 The Output Supply Curve in the Efficiency Wage Model

25 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-25 Figure 16.23 An Increase in G in the Efficiency Wage Model

26 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-26 Figure 16.24 An Increase in Total Factor Productivity in the Efficiency Wage Model

27 Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 16-27 Figure 16.25 An Increase in the Effectiveness of Monitoring by the Firm


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