Questions from Labor Economics

Q: Suppose 25,000 persons become unemployed. You are given the

Suppose 25,000 persons become unemployed. You are given the following data about the length of unemployment spells in the economy: Duration of Spell (in months)......…..Exit Rate 1………………………………………………....

Q: During the Great Recession, many news stories focused on a rising

During the Great Recession, many news stories focused on a rising number of discouraged workers. The implication of many of these stories is that the unemployment situation was worse than indicated by...

Q: Consider Figure 12-19 in the text. What happened to

Consider Figure 12-19 in the text. What happened to the unemployment rate in France, Germany, and Italy from 1970 to 2000? What do you think explains this pattern?

Q: a. Use Table 571 of the 2008 U.S.

a. Use Table 571 of the 2008 U.S. Statistical Abstract to describe how unemployment rates have changed for males, females, whites, blacks, and Hispanics since 1970. b. Use Table 609 of the 2008 U.S. S...

Q: Suppose the current UI system pays $500 per week for up

Suppose the current UI system pays $500 per week for up to 15 weeks. The government considers changing to a UI system that requires someone to be unemployed for five weeks before receiving any benefit...

Q: Unemployment insurance automatically stimulates the economy during an economic contraction, which

Unemployment insurance automatically stimulates the economy during an economic contraction, which is good from the workers’ point of view. From the firm’s point of view, however, the UI system can be...

Q: Consider the standard job search model as described in the text.

Consider the standard job search model as described in the text. a. Why are the asking wage and expected unemployment duration positively related? b. Can the standard job search model explain why unem...

Q: Consider Table 610 of the 2008 U.S. Statistical Abstract

Consider Table 610 of the 2008 U.S. Statistical Abstract. a. How many workers aged 20 or older were unemployed in the United States during 2006? How many of these were unemployed less than 5 weeks, 5...

Q: The previous question concerned the unemployment rate and the distribution of weeks

The previous question concerned the unemployment rate and the distribution of weeks of unemployment immediately prior to the Great Recession. Now consider Table 627 of the 2011 U.S. Statistical Abstra...

Q: Suppose the marginal revenue from search is MR = 50 -

Suppose the marginal revenue from search is MR = 50 - 1.5w where w is the wage offer at hand. The marginal cost of search is MC = 5 + w a. Why is the marginal revenue from search a negative function o...