Lecture 2 - Unemployment Survey

Question 1

Why is the unemployment data which is derived from national insurance data in the early 1900s not completely representative of the whole population?

Answer 1

• as initially, only those who were at greatest risk of unemployment had national insurance
• it later diffused out to whole labour force

Question 2

The national insurance data showed trends for unemployment, but it couldn’t be solely used to calculate the rate/level of unemployment. What did Feinstein do to get an accurate picture of the level of unemployment?

Answer 2

• he used the 1931 census
• looked at unemployment for the whole population, and compared it to unemployment from national insurance data
• he then used this to get a scale for that year
• he used this scale to build the picture of aggregate unemployment in the interwar period

Question 3

Where did the pre-WWI unemployment data come from?

Answer 3

• trade union records
• trade unions recorded unemployment of their members

Question 4

Why is the pre-WWI unemployment data not that representative?

Answer 4

• trade union representation pre-1914 is not very extensive
• few groups are covered by unions, these groups are the most skilled workers

Question 5

What is the trend of the unemployment rate pre-1914?

Answer 5

• it is trend stationary
• there are cycles

Question 6

When is there (first) a large jump in the unemployment rate in interwar Britain?

Answer 6

1921 (due to a major recession)

Question 7

What is the mean value of the unemployment rate pre-1914?

Answer 7

5-6%

Question 8

What is the mean value of unemployment in interwar Britain?

Answer 8

10%

Question 9

What were the 3 categories of unemployment that were used in the interwar period?

Answer 9

• wholly unemployed (unemployed)
• temporarily stopped (laid off with a promise of re-employment within 6 weeks - interwar furlough)
• causals (those working a few days of employment at a time)

Question 10

Give 4 key features on how unemployed varied in interwar Britain over different categories

Answer 10

• high for males
• high in the regions of outer Britain
• high in the traditional staple industries
• unemployment positively related with age

Question 11

What is the major transition regarding the nature of unemployment between the 1920s and the 1930s?

Answer 11

there is a shift from short term unemployment in the 1920s, to long term unemployment in the 1930s

Question 12

Give 2 institutions which may affect unemployment

Answer 12

• benefit systems
• trade unions - collective bargaining institutions

Question 13

What did it say in the 1911 Unemployment Insurance Act? What did the 1920 Unemployment Insurance Act say?

Answer 13

• 1911: centrally administrated contributory unemployment Insurance Benefits available to 2.25 million workers - 15% of the workforce
• 1920: increased coverage to 11 million worker, targeted incomes below £250 p.a. (the level below income tax liability)

Question 14

Briefly summarise the benefits system in the years: 1911, 1924, 1925 & 1927

Answer 14

• 1911 - benefit of 7 shillings for a maximum of 15 weeks in any 52 weeks period
• 1924 - the Labour government allowed extended benefits to be claimed indefinitely
• 1925 - benefits were increased to 15 shillings for men and 12 shillings for women
• 1927 - applicants had to show they were genuinely seeking work, with the burden of proof on the claimant

Question 15

What was the UK union density in the years 1891, 1900, 1910, 1920, 1930 & 1940?

Answer 15

• 1891 - 11%
• 1900 - 13%
• 1910 - 16%
• 1920 - 48%
• 1930 - 26%
• 1940 - 33%

Question 16

What was the trend of union density data for the UK in the 1920s?

Answer 16

mainly a downward trend