Chapter 10 - Unemployment Flashcards
Unemployment Rate
The unemployment rate is the percentage of the labor force that is unemployed.
Labor Force
The labor force is the total number of workers, including both the employed and the unemployed.
Labor-Force Participation Rate
The labor-force participation rate is the percentage of the adult population that is in the labor force.
Natural Rate of Unemployment
The natural rate of unemployment is the normal rate of unemployment around which the unemployment rate fluctuates.
Cyclical Unemployment
Cyclical unemployment is the deviation of unemployment from its natural rate.
Discouraged Workers
Discouraged workers are individuals who would like to work but who have given up looking for a job.
Frictional Unemployment
Frictional unemployment is unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills.
Structural Unemployment
Structural unemployment is unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one.
Job Search
The job search is the process by which workers find appropriate jobs given their tastes and skills.
Unemployment Insurance
Unemployment insurance is a government program that partially protects workers’ incomes when they become unemployed.
Union
A union is a worker association that bargains with employers over wages, benefits, and working conditions.
Collective Bargaining
Collective bargaining is the process by which unions and firms agree on the terms of employment.
Strike
A strike is the organized withdrawal of labor from a firm by a union.
Efficiency Wages
Efficiency wages are above-equilibrium wages paid by firms to increase worker productivity.
