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Macroeconomic Analysis 2003

Macroeconomic Analysis 2003. Theories of Unemployment Blanchard 6-8,13, Mankiw 6, M&S 18. Four Theories of Unemployment. Unemployment in the Classical Model: Minimum wage and Labour Market Rigidity. B. C. A. LD(MPL). 0. L1. L2. L.

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Macroeconomic Analysis 2003

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  1. Macroeconomic Analysis 2003 Theories of Unemployment Blanchard 6-8,13, Mankiw 6, M&S 18 Lecture 20

  2. Four Theories of Unemployment Lecture 20

  3. Unemployment in the Classical Model: Minimum wage and Labour Market Rigidity B C A LD(MPL) 0 L1 L2 L Lecture 20

  4. Unemployment in the Classical Model: A Numerical Example Minimum wage, Labour Market Rigidity and Involuntary unemployment B C A LD(MPL) 0 L1 = 485 L2=605 L = 488 U = 120 Lecture 20

  5. Lecture 20

  6. A Numerical Example of the Natural Rate of Unemployment Lecture 20

  7. Real wage, Mark up and the Natural Rate of Unemployment 0 Un =0.048 Lecture 20

  8. Efficiency wage theory Lecture 20

  9. Firms Demand for labour Unions wage employment preference Firms Labour demand U(w,E) Collective Labour supply Wage rate Wage rate MPL MPL Employment Employment Lecture 20

  10. Insider-Outsider Model of Unemployment with Wage rates and Employment in the Union and Non-union Sectors LD in non union sector LD in union sector U(w,E) Wage rate in the non-union Sector wu Wage rate in the Union Sector wnu 0 Non-union, E Union, E u Lecture 20

  11. Frictional and structural unemployment Lecture 20

  12. Frictional Unemployment Rate Lecture 20

  13. Involuntary Unemployment in the Collective Bargaining Collective labour supply Individual labour supply A B Wu Union voluntary and Individual Involuntary unemployment Wf o L2 Le L1 Lecture 20

  14. Structural unemployment: Labour Market Rigidity Lecture 20

  15. Measures to reduce unemployment rate Lecture 20

  16. References Lecture 20

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