1. Chapter 7. Unemployment Homework: pp. 201-02 # 3, 6, 7 Link to syllabussyllabus

2. Fig. 7-1, p. 178. Unemployment Rate and Natural Rate of Unemployment

3. Fig. 7-2, p. 179. The Transition between Employment and Unemployment

4. K/W text. p. 221 Labor Market Flows/month 2007 mt views this as suggesting that the big action isn’t jobs into unemployment, but is people dropping out of the labor force.

5. Monthly Flows Source: Blanchard Text

6. Natural Rate of Unemployment (Not constant). Explained in terms of job separation and job finding Separation ‘s’ depends on E. Finding ‘f’ is function of U U/L = s/(s+f) p. 179 S reflects job destruction, job loss, transitions. Destruction, in turn, would depend on trade policy, competition; even factors such as sector specific rates, and regional rates. Transition depends on demography (age, gender, race), education, etc. Finding function of job search, will depend on wage rigidity, unionization, minimum wage, unemployment benefits, efficiency wages. Sometimes economists speak of ‘insiders’ and ‘outsiders’ – academics have ‘tenure’.

7. Job Destruction in Manufacturing-Blanchard text

8. Fig. 7-3, p. 183. Real-Wage Rigidity and Labor Rationing

9. Table 7-1 p. 186. Percent of Workers Covered by Collective Bargaining

10. Figure 7-4 P. 191. Median Duration of Unemployment

11. Table 7-2, p. 192. Unemployment Rate by Demographic Group

12. Table 7-3, p. 194. Alternative measures of Labor Underutilization

13. Fig. 7-5, p. 195. Unemployment in Europe

14. Figure 7-6 p. 198. Annual Hours Worked per Person