topic 5 Flashcards
privatisation
selling of state owned assets to the private sector. For example, BT and Royal mail.
Marketization / commercialisation
Involves shifting provision of goods or services from the non market sector to the market sector
Deregulation
Involved removing previously imposed regulations opposite of regulation
frictional unemployment/ transactional
Caused by workers seeking a better job or who are in a time in between jobs usually short term
Geographical immobility of Labour
When workers are unwilling or unable to move from one area to another in search of work
Occupational immobility of Labour
When workers are unwilling or unable to move from one type of job to another e.g., because different skills are needed
Structural unemployment
A immobility of Labour due to long term change in the structure of an industry
deindustrialization
The decline of manufacturing industries, together with coal mining
Cyclical unemployment
Unemployment caused by the ups and downs of the economic cycle/ caused by lack of aggregate demand in the economy when the economy goes into a recession or depression
Keynesian unemployment
type of unemployment that occurs when aggregate demand in an economy is insufficient to create enough jobs for all willing and able workers.
seasonal unemployment
Unemployment arising in different seasons of the year, caused by factors such as the weather and the end of the Christmas shopping.
Real wage
wage rate adjusted for inflation or changes in purchasing power over time.
real wage unemployment
Unemployment is caused by wages being too high (above equilibrium market clearing real wage) relative to the productivity of workers, employers are unwilling to hire workers at the current wage level because they believe the workers aren’t worth that much
Voluntary unemployment
occurs when individuals choose not to work at the current wage rate and are capable of and willing to work. - economically inactive
