Topic 1

Question 1

What are the 3 types of agents in labour economics?

What do the interactions of these agents determine?

Answer 1

Workers: decide whether to work or not, how many hours to work, how much effort to put into their job, which skills to acquire, which occupation to enter ⇒ Labour supply.

Firms: decide how many and which types of workers to hire, what types of jobs to offer ⇒ Labour demand.

Government: uses regulation to achieve goals of public policy, e.g. minimum wages, occupational safety, taxes.

• Interaction of these agents determines employment and wage outcomes

Question 2

Define relevant pop

Answer 2

All individuals 15 years or older who are not “institutionalized” or in the military.

Question 3

Define labour force (LF)

Answer 3

All individuals from the relevant population who are either employed (E) or unemployed (U).

Question 4

Who is considered employed?

Answer 4

Anyone who, during a particular reference week, did any paid work, either as an employee or as self-employed

Question 5

Who is considered unemployed?

Answer 5

Anyone who did not do any paid work and is actively looking for work.

Question 6

Who is excluded from the labour force?

Answer 6

People who are not working and are not actively looking for work.

e.g Students (not working), retired persons, household workers, discouraged workers and others not actively seeking work.

Question 7

What’s the formula for POP?

Answer 7

Pop = LF + NLF

Question 8

What’s the formula for LF?

Answer 8

LF = E + U

Question 9

What’s the formula for labour force participation rate?

Answer 9

LFPR = LF/ Pop

Question 10

What’s the formula for employment rate?

Answer 10

ER = E/ Pop

Question 11

What’s the formula for unemployment rate?

Answer 11

UR = U /LF

Question 12

True or False: The labour participation rate of men has been increasing, while women’s have been decreasing?

Answer 12

False: Men’s have fallen slightly while womens have increased substantially over the decades.

Question 13

True or False: The participation rate difference between men and women in Canada ranks first among countries measured in teacher’s notes?

Answer 13

False: It is second (7.1) only to Denmark (4.9)

Question 14

True or
False:

The line of regression for participation rates across countries for men is horizontal?

Answer 14

True.

Question 15

True or False: The regression line for participation for women across countries is horizontal?

Answer 15

False. It rises from left to right or is linearly sloped. The line shows that the more westernized the country or the more advanced, the more women participate in labour.

Question 16

True or False: the participation rates for U.S women classified as being married has increased substantially relative to non married U.S women?

Answer 16

True

Question 17

True or False: men are more likely to work 1-39 hours per week than women?

Answer 17

False: this is true of women

Question 18

True or False: men are more likely to work 40+ hours than women?

Answer 18

True

Question 19

In the historical view of unemployment begining from 1921, when was unemployment the highest?

Answer 19

Between 1927 and 1940 and going as high as 20%.