Chapter 28: Unemployment Flashcards
Unemployment rate
The percentage of the labor force that is unemployed
Labor-force participation grade
The percentage of the adult population that is in the labor force
Natural rate of unemployment
The normal rate of unemployment around which the unemployment rate fluctuates
Cyclical unemployment
The deviation of unemployment from its natural rate
Discouraged workers
Individuals who would like to work but have given up looking for a job
Frictional unemployment
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
Structural unemployment
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 process by which workers find appropriate jobs given their tastes and skills
Unemployment insurance
A government program that partially protects workers’ income when they become unemployed
Union
A worker association that bargains with employers over wages, benefits, and working conditions
Collective bargaining
The process by which unions and firms agree on the terms of employment
Strike
The organized withdrawal of labor from a firm by a union
Efficiency wages
Above-equilibrium wages paid by firms to increase worker productivity
Labor force
The total number of workers, including both the employed and unemployed
