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Bureau of Labor Statistics
- produces data on unemployment, length of the avg workweek, and duration of unemployment every month (survey of 60,000 households)
work as paid employees, in own business, unpaid worker in family business (part time full time, were not working but had jobs that they were temporarily absent from)
those who were not employed, were available for work, and had tried to find employment during the previous 4 week
Natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates
Does unemployment rate measure what we want it to?
hard to distinguish b/w a person who is unemployed and a person not in the labor force, more than 1/3 of unemployed are recent entrants into the labor force, almost 50% leave labor force because they cannot find employment
Unemployment statistics difficult to prove:
unemployed may not be trying hard to get a job, calling themselves unemployed to qualify for government programs, working but paid "under the table" to avoid taxes
results because it takes time for workers to search for the jobs that are best suited for them
when a quantity of labor supplied exceeds quantity of labor demanded (often thought to explain longer spells of unemployment)
a government program that partially protects workers' incomes when they become unemployed (increases frictional unemployment, 50% of former wages for 26 weeks)
worker associations that bargain with employers over wages, benefits, and working conditions (wages are not determined by equilibrium)
an organized withdrawal of labor from a firm by a union (reduced production, sales, and profit)
Wagner Act of 1935
prevents employers from interferring in unions and bargain with unions in good faith
better paid workers eat a more nutritious diet, making them healthier and more productive
the more a firm pays its workers, the less often they will choose the leave, reducing turnover
when a firm pays a high wage, it attracts a better pool of workers to apply for its jobs and increases the quality of workforce
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