Essentials of Economics, 3rd ed

1
Unemployment
2
Unemployment

• Unemployment
• in practice

3
Unemployment rates in selected industrial
countries
UK
4
Unemployment rates in selected industrial
countries
UK
5
Unemployment rates in selected industrial
countries
UK
France
6
Unemployment rates in selected industrial
countries
UK
France
7
Unemployment rates in selected industrial
countries
Germany
UK
France
8
Unemployment rates in selected industrial
countries
Germany
UK
France
9
Unemployment rates in selected industrial
countries
Germany
UK
France
USA
10
Unemployment rates in selected industrial
countries
Germany
UK
France
USA
11
Unemployment rates in selected industrial
countries
Germany
Japan
UK
France
USA
12
Unemployment rates in selected industrial
countries
Germany
Japan
UK
France
USA
13
Unemployment rates in selected industrial
countries
Germany
Japan
UK
OECD
France
USA
14
Unemployment rates in selected industrial
countries
Germany
Japan
UK
OECD
France
USA
15
Standardised unemployment rates in different
sectors of the labour market (2002)
16
Standardised unemployment rates in different
sectors of the labour market (2002)
17
Standardised unemployment rates in different
sectors of the labour market (2002)
18
Standardised unemployment rates in different
sectors of the labour market (2002)
19
Unemployment

• Equilibrium unemployment

20
Equilibrium unemployment
ASL
Average (real) wage rate
e
We
ADL
O
Qe
No. of workers
21
Equilibrium unemployment
ASL
N
Average (real) wage rate
e
We
ADL
O
Qe
No. of workers
22
Unemployment

• Equilibrium unemployment
• The average duration
• of unemployment

23
Average duration of unemployment
Wage rate
O
Period of search
24
Unemployment

• Disequilibrium unemployment

25
Disequilibrium unemployment
ASL
Average (real) wage rate
W2
We
ADL
O
No. of workers
26
Unemployment

• Disequilibrium unemployment
• Demand-deficient unemployment

27
Demand-deficient unemployment
ASL
Average (real) wage rate
W1
ADL 1
ADL 2
O
Q1
No. of workers
28
Unemployment

• Equilibrium and disequilibrium unemployment

29
Equilibrium and disequilibrium unemployment
ASL
Average (real) wage rate
e
We
ADL
O
Qe
No. of workers
30
Equilibrium and disequilibrium unemployment
ASL
Average (real) wage rate
b
a
W2
e
We
ADL
O
No. of workers
31
Equilibrium and disequilibrium unemployment
ASL
N
Disequilibrium unemployment
Average (real) wage rate
b
a
c
W2
e
We
ADL
O
No. of workers