Question: P- adult population, L-labor force, E- employed, U-unemployed, L=E+U, e=E/P - employment rate, m=L/P - participation rate, u=U/L - unemployment rate, U+E=L. ute=1, a -

 P- adult population, L-labor force, E- employed, U-unemployed, L=E+U, e=E/P -

P- adult population, L-labor force, E- employed, U-unemployed, L=E+U, e=E/P - employment rate, m=L/P - participation rate, u=U/L - unemployment rate, U+E=L. ute=1, a - accession rate, s-separation rate, ut+1= up+set-aut, Aut+1 = s(1-up)-aut, steady-state unemployment rate 0 = s/(s+a), A=1-(s+a) - speed-of-adjustment parameter; smaller A corresponds to a more dynamic labor market. Assume 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!