Sony Ericsson's Situation Analysis

Summary Chapter 6: Unemployment Economists study unemployment to identify its causes and to jockstrap exchange the universal policies that affect the unemployed such as job-training programs, help people find employment. In this chapter we begin our study of unemployment by discussing why there is everlastingly some unemployment and what determines its level. I. crease Loss, Job Finding, and the Natural Rate of Unemployment Some workers lose or stop over their jobs, and some unemployed workers ar hired. This perpetual ebb and race determines the fraction of the labor force that is unemployed - The labor force is the amount of the employed and the unemployed: L = E + U - The steady-state condition: fU = sE - The unemployment treasure: II. Job Search and Frictional Unemployment Frictional unemployment is the unemployment caused by the succession it takes worker to search for a job. And economists call a change in the composition of demand among industries or region a sectoral shift. Because sectoral shifts are always occurring, and because it takes time for workers to change sectors, there is always frictional unemployment.

Public Policy and Frictional Unemployment Many public policies seek to decrease the natural rate of unemployment by reduction frictional unemployment; for example, retraining program. However, unemployment insurance increases the amount of frictional unemployment. III. Real-Wage rigidity and Structural Unemployment Wage rigidity is a second dry land for unemployment. It is the failure of wages to adjust to a level at which labor supply equals labor demand. Structural unemployment arises because firms fail to abase wages despite an excess supply of labor. There are tree causes of this wage rigidity: - Minimum-Wage Laws: set a reasoned minimum on the wages that firms pay their employees. - Unions and Collective bargain: the wages of unionized workers are determined not by... If you penury to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .