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Most Spells of Unemployment Are Short, and Most Unemployment Observed

question 215

Essay

Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?


Definitions:

State Law

The body of law enacted by the legislative branch of a state government or established by its judiciary.

Monopsony

A market condition where there is only one buyer for a product or service, giving them greater power over sellers.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by employers and the wage rate.

Equilibrium Wage

The wage rate at which the quantity of labor firms wish to hire equals the quantity of labor workers wish to supply in the labor market.

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