Monday

 Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.

PART 9 The Real Economy in the Long Run
Chapter 28 of 36 Unemployment
Section 1 of 21
…
Chapter 28 of 36 – Unemployment
How Is Unemployment Measured?
Labor-Force Participation of Men and Women In the U.S. Economy
Does the Unemployment Rate Measure What We Want It To?
How Long Are the Unemployed Without Work?
There Are Always Some People Unemployed – Frictional Unemployment
Public Policy and Job Search
Unemployment Insurance
Unemployment Policy At Home and Abroad
Minimum-Wage Laws
Who Earns the Minimum Wage?
Unions and Collective Bargaining
The Economics of Unions
Are Unions Good Or Bad For the Economy?
The Theory of Efficiency Wages
Worker Health, Worker Turnover
Worker Quality, Worker Effort
Henry Ford and the Very Generous $5-A-Day Wage
... …
measurement of unemployment
shitsugyō no sokutei
失業の測定
… …
Grok chapter 28 summary:
The Bureau of Labor Statistics measures unemployment each month through the Current Population Survey of roughly sixty thousand households.
It classifies adults as
-employed if they worked for pay or in their own business or were temporarily absent
-unemployed if they lacked work but were available and actively seeking it in the prior four weeks or awaiting recall from layoff, and not in the labor force otherwise.
These figures show unemployment fluctuating around a natural rate composed of frictional and structural components, typically about 4% in the U.S., with cyclical unemployment representing the short run deviations from that natural rate that rise in recessions and fall in expansions.
…
Frictional (natural) unemployment arises inevitably as workers spend time searching for jobs that best match their skills, tastes, and locations in a dynamic economy where jobs are continually created and destroyed.
Structural unemployment results when wages in some labor markets stay above the level that would clear supply and demand, leaving a persistent surplus of workers.
Minimum wage laws contribute by imposing a floor that exceeds the equilibrium wage for low skilled labor and thereby reduces hiring.
Unions raise pay for members through collective bargaining and strike threats, which can limit employment opportunities for nonmembers or prompt firms to employ fewer people overall.
…
Firms also pay efficiency wages above market clearing levels to raise productivity through better worker nutrition and health, lower turnover, stronger effort and morale, and a superior applicant pool, with the resulting labor surplus appearing as unemployment.
…
The chapter concludes that positive natural unemployment is a normal feature of changing economies because of search costs and wage rigidities.
Policies such as improved job information or unemployment insurance affect search duration and the measured unemployment rate.

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