LABOUR MARKET INTRO

Question 1

4 reasons why labour market important

Answer 1

1. welfare relevant
2. Labour = main source of income
3. Labour = important FOP
4. LR and business cycle issues

Question 2

Employment level =

Answer 2

number people who work as paid employees, self-employed or unpaid employees in family business.

Question 3

Unemployment level =

Answer 3

number people who:

1) are not employed
2) are searching for a job
3) ready to start work immediately

Question 4

Labour force =

Answer 4

employment + unemployment levels

Question 5

Not included in LF =

Answer 5

students, retired, discouraged workers.

Question 6

employment rate =

Answer 6

employment level / working age pop.

Question 7

unemployment rate =

Answer 7

unemployment level / labour force

Question 8

Do erate and urate sum to 1?

Answer 8

NO - different denominators

Question 9

Participation rate =

Answer 9

LF / working age pop

Question 10

LR changes in participate rate

Answer 10

Increase since 1960s-2000

But then decreased since 2000

Question 11

LR changes in participate rate by gender

Answer 11

Increase driven by women

decrease after 2000 driven by men and reversal of women.

Question 12

Participation rate over BC

Answer 12

mildly pro-cyclical, less volatile.

Question 13

LR trends in wages

Answer 13

Increased real wages but slower growth since 1970s.

Some gender wage convergence.