T6 Labour market and economic integration Flashcards
Migration is
another form of integration - more efficient allocation of resources
migration within EU is very limited, why?
wzor for working age population (N)
N= E+U+O = L+O
Labour force (L)
L= E+U
unemployment rate
U/U+E
participation rate
L\P=L/N =1-O/N
Employment rate
e=E/N = E/L x L/N = ep
monetary union can function good with
well-performing labor market
what is market clearing ?
why does the labor market not clear ?How can we explain equilibrium with unemployment ?
in notebook :)
why wages dont fall to eliminate involuntary unemployment
Involuntarily unemployed people, by definition, want to work at less than the going wage rate. Why don’t firms cut wages, thereby increasing profits? simple reason that any reduction in the wage paid would lower the productivity of all em- ployees already on the job.
decribe collective negociations
graph in notebook
social generous unemployment programmes (due to higher unemployment in EU) leads to
involuntary unemployment = waste of resources
the cyclical impact of wage rigidity
graph :)
what is social dumping
competition reduces social protection in older Member States
