LABOR ECON-CONNECT ACCESS
8th Edition
ISBN: 9781264604197
Author: BORJAS
Publisher: MCG
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Question
Chapter 12, Problem 1P
(a)
To determine
Explain how many
(b)
To determine
Explain the fraction of persons who are long-term unemployed for the last 5 or more months.
(c)
To determine
Explain the fraction of unemployment month that can be attributed to persons who are long-term unemployed.
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According the U.S. labor statistics, roughly 5.8 million people were unemployed in 2006. Of these, 2.1 million were unemployed for less than 5 weeks, 1.7 million were unemployed for 5 to 14 weeks, 900,000 were unemployed for 15 to 26 weeks, and 1.1 million were unemployed for 27 or more weeks. Assume that the average spell of unemployment is 2.5 weeks for anyone unemployed for less than 5 weeks. Similarly, assume the average spell is 10 weeks, 20 weeks, and 35 weeks for the remaining categories. How many weeks did the average unemployed worker remain unemployed? Write your answer in millions of week (i.e. if your answer is 30,500,000 weeks, input 30.5 as the answer)
The town of Villageton has 500 residents, of which 300 are employed, 30 are not working but actively seeking work, 70 are children in school, 40 are retirees, 30 are full-time college students, 20 are institutionalized, and 10 are discouraged workers.
Calculate the unemployment rate in Villageton.
Suppose 10 of the 30 college students graduate and enter the labor force actively seeking work, but only 5 find a job. How does this change the unemployment rate in Villageton?
Is this economy “fully-employed” according to the U.S. definition? Why or why not?
How would the “U6” definition of unemployment differ from your answer to question #2a? Would it be higher or lower?
Calculate the labor force participation rate (LFPR) using the numbers above.
How would I calculate these? I feel like I would need the number of unemployed people rather than employed
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