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Education and Unemployment Flashcards

1
Q

3 types of jobs (3 education levels for work)

A

professional
clerical
skills + manual

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2
Q

where can skills for work be learned

A

formally through education

on the job

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3
Q

why is it difficult for every country to be high skilled

A

poverty traps (positive assortative matching in production)

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4
Q

as an alternative to technology as a key element of the production function, what can be used instead

A

education

education levels can lead to improvements in technology and innovation anyways so a highly skilled workforce is more efficient

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5
Q

how does the poverty cycle affect education

A

more incentive to invest in education when those around you have also and are in high skilled jobs

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6
Q

why are the benefits of education hard to define

A

individual benefits are clear but societal benefits are harder to measure eg better health and nutrition, better informed electoral

its difficult to separate the effects of education from the effects of innate ability and selection effect

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7
Q

what is innate ability

A

pre existing qualities that allow someone to succeed in life

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8
Q

what are some examples of selection effects

A

socio economic status

parental support etc

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9
Q

ways of improving education access in developing countries

A 
free text books
school meals
improved parental involvement
improved school governance
free uniforms
scholarships
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10
Q

globally, what is the return of a university degree, what does this mean

A

10%

for each degree you have, your possible income increases by 10%

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11
Q

why is education subsidised

A

upfront costs are hard to get loans for
dont want people in debt
therer are societal benefits of education

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12
Q

what is the argument for fairness in subsidised education

A

why should people who dont go to college pay for those who do

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13
Q

what is the argument for competitiveness in education

A

the people who dont go can still benefit as there will be a smarter electorate, more foreign direct investment and great social benefit

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14
Q

4 options for 3rd level fees

A
  1. Fees for none (completely subsidised)
  2. Fees for some (means tested)
    3, Fees for all with cheap credit loans
  3. Fees for all with no debt
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15
Q

benefits of no college fees

A

no barriers to entry

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16
Q

disadvantages of no college fees

A

underfunded resources

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17
Q

what are the disadvantages of means tested fees

A

difficult to do fairly eg edge case

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18
Q

what are the benefits of means tested fees

A

progressive

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19
Q

how has the government got equities in education

A

they have a share in the profit but no returns if there are losses

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20
Q

what is the risk associated with the government having equities in education

A

uncertainty that people may not be able to pay back their debt, or may not get great returns from the education

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21
Q

who is the labour force made up of

A

everyone who is unemployed or employed (ie able to work)~

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22
Q

should unemployment be measured against the labour force or the population
why

A

labour force

because its just those who are unemployed but also want to work. ie it would be pointless to include children, people in full time education and retirees

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23
Q

what is the participation rate

A

how many people in the population are in the labour force

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24
Q

what are 3 issues around measuring unemployment

A

including/excluding discouraged workers

timeline of updates

people who are only working part time because they cannot find full time jobs

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25
who are discouraged workers
people who are no longer actively looking for jobs because they feel they cant find one
26
what is the problem with the timeline of updates when measuring unemployment
are they live, monthly, quaterly?
27
what is the natural rate of unemployment
when the labour marker is in equilbrium
28
what are the 3 types of unemployment
structural unemployment cyclical unemployment frictional unemployment
29
which is the longest type of unemployment
structural unemployment
30
define structural unemployment
when there is a mismatch between the skills the worker has and the skills the labour force demands eg previously worked in a dying industry and now has no modern skills, automation of their job
31
what is cyclical unemployment
short run unemployment during recessions and business cycles
32
what is frictional unemployment
short run unemployment when people are between jobs
33
which type of unemployment is the natural rate of unemployment
frictional unemployment
34
what are the unemployment supports in ireland
jobseekers benefit | jobseekers allowance
35
what is the jobseekers benefit
not mean tested (just have to have paid PRSI) short term payment for a maximum duration of 12 months while someone searches for another job ranges from 150e-300e
36
what is ther jobseekers allowance
means tested used when jobseekers benefit has been used up about 203e a week
37
what fiscal policy was introduced during the pandemic to help those who lost their job as a result of lockdown
Pandemic Unemployment Payment
38
what fiscal policy can help people retrain and reskill to allow them to become more employable
back to education allowances, | this is an incentive to use the time unemployed to gain skills
39
whats the effect of unemployment fincancial supports on frictional unemployment
people can take longer off to find a job that suits them best without income insecurity
40
whats the effect of unemployment financial supports on structural unemployment
the income may not be sufficient for longer term
41
causes of structural unemployment
minimum wage laws, trade unions, efficiency wage, skills mismatch
42
ways to solve/minimize frictional unemployment
advertise job vacancies | training programs
43
what is a reservation wage
the minimum wage that someone is willing to work for
44
what is the theory of efficiency wages
firms operate more efficiently if wages are above the equilibrium
45
why does having higher than equilibrium wages increase efficiency
1. better pool of applicants to job 2. less turnover 3. higher effort and motivation 4. improved worker health
46
some government policies to reduce unemployment
job search assistance training programs incentives to private sectors to employ more eg wage subsidies creating employment in the public sector
47
how can unemployment be measured
people receiving benefits
48
why is unemployment never 0
takes time for people to find a suitable job | quantity demanded > quantity supplied
49
why is frictional unemployment a lot shorter term nowadays
online job applications and job postings makes it easier to find out about job openings
50
why do firms agree with unions and provide them with what they want
firms want to avoid strikes as they decrease productivity
51
what is the issue with unions
they only benefit the union members | some people will get raises etc at the expense of others
52
why do firms not want high worker turnover
it's costly to hire and train new workers | more experienced workers are more productive
53
possible individual costs of unemployment
``` loss of earnings stress, self esteem issues, health problmes drug, alcohol abuse crime family breakdown de skilling ```
54
what is de skilling
lose touch with new methods, no longer viewed as favourable candidates in job applicants
55
possible societal costs of unemployment
opportunity cost tax and benefits effect reverse multiplier effect
56
effect of unemployment on taxes and benefits
people have less income so reduce their consumption, government spending must be much higher to pay unemployment benefits but also dealing with other effects eg drug abuse
57
what is a reverse multiplier effect
less spending in the economy can result in more people being made redundant as demand decreases
58
pros of unemployment benefit
protects workers against income loss stablise economy during recession encourages workers to look for good match jobs
59
cons of unemployment benefit
can be generous, lengthening time spent unemployed no strong evidence that it helps people find a better job people may exaggerate job searching activity in order to continue to receive the payments funded by taxes
60
unemployment benefits are targetted at which 2 types of employment. Why not the other type
cyclical and frictional structural requires reforms in the labour market

Economics (25 decks)

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