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1a. Labor Markets
Topics in Macroeconomics University of Edinburgh
7
Economics
Undergraduate 4
04/20/2017

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Cards

Term
Main labour market is measured in ______
Definition
Aggregate Total hours per worker
Term
Wealthy Countries work (more or less) as their GDP grows.
Definition
less*

*United States remains constant
Term
Total Hours Per Person (3 Parts)
Definition
Average number of hours for individuals of a given economy

1. Participation Rate
2. Employment Rate
3. Hours per Worker
Term
Cyclical Variations
Definition
short run fluctuations associated with business cycles

i.e. early 80s, early 90s, great recession: unemployment rose immensely
Term
Secular Variations
Definition
long run fluctuations that occur over a long period of time

i.e. unemployment increased in 80s, decreased in 90s
Term
employment, hours per worker, and labour force participation are (procyclical or countercyclical)
Definition
procyclical
move with declines and increases in economy

employment > labour force participation
employment > hours per worker
Term
Discouragement Effect
Definition
Unemployed become discouraged about finding employment so they drop out of the labour force.

Lowers unemployment but indicates bad health of economy. Can lead to misleading unemployment rates.
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