Chapter 28 Key Terms Flashcards
(18 cards)
Labor force
The total number of workers, which is the sum of the unemployed and the employed
Unemployment rate
Percentage of the labor force that is unemployed
Labor-force participation rate
Percentage of the adult population in the labor force
Natural rate of unemployment
Normal rate of unemployment about which the unemployment rate fluctuates
Cyclical unemployment
The deviation of the unemployment rate from its natural rate
Discouraged workers
Workers who stop looking for work due to an unsuccessful search
Frictional unemployment
Unemployment due to the time it takes for workers to search for the jobs that best suits their tastes and skills
Structural unemployment
Unemployment that results because the number of jobs available in some labour markets is insufficient for everyone who wants a job to get one
Job search
The process by which workers find appropriate jobs given their tastes and skills
Sectoral shifts
Changes in the composition of demand across industries or regions
Unemployment insurance
A government program that pays laid-off workers a portion of their original salaries
Union
Worker association that bargains with employers over wages, benefits, and working conditions
Collective barganaing
The process by which unions and firms agree on Labor contracts
Strike
An organized withdrawal of labor from the firm
Insiders
Those employed in union jobs
Outsiders
Those not employed in union jobs
Right-to-work laws
Legislation that makes it illegal to require union membership for employment
Efficiency wages
Wages voluntarily paid in excess of the competitive equilibrium wage to increase worker productivity
