Significance of concept and theory of search unemployment, Managerial Economics

SIGNIFICANCE  OF  THE  CONCEPT  AND THEORY OF SEARCH UNEMPLOYMENT 

From what has been  said earlier, you understand the significance of the theory of search  unemployment  as  an  attempt to endow realism  to the  elegant neoclassical model of employment and output. You  should also understand the practical significance of the concept of search unemployment as it has worked itself out  in  the United  States and  in  some  of  the  countries of the  European Union. 

The idea of search unemployment gained importance in the US economy in  the 1990s when the social security system was being restructured  in that country. It is easily understandable that  the ability and desire of a person to keep  looking for a better  job  and to remain unemployed  in the mean time depends in part on the availability of  unemployment  benefits  under  such  a system. The unemployment that arises when a person quits a job  to have more time to  look for a better job,  or when an unemployed delays accepting a job  in  the hope of finding a better one, is of course the search unemployment that we have been discussing.  If all  jobs are the same, an unemployed person will take the first one offered.  If  some jobs  are  better  than  others,  it is  worthwhile.  searching  and waiting for a good one. The higher the unemployment benefits, the more likely people are to keep searching for a better job, and the more likely they are to quit their current job to try to find a better one. It was consideration of these kinds that  prompted the  United  States  to  restructure their  unemployment  benefits system in the 1990s. If unemployment rates in the European Union are by  and large higher than  those prevailing in  the United States in recent years, part  of the explanation is the fact  that  it is  not as easy, as  in the  countries of  the European Union, to obtain unemployment benefits in the United States after the revamping of  their unemployment benefits system. 

Posted Date: 10/26/2012 6:29:49 AM | Location : United States







Related Discussions:- Significance of concept and theory of search unemployment, Assignment Help, Ask Question on Significance of concept and theory of search unemployment, Get Answer, Expert's Help, Significance of concept and theory of search unemployment Discussions

Write discussion on Significance of concept and theory of search unemployment
Your posts are moderated
Related Questions
Real Rigidities in the Goods Market   The most important factor associated with real rigidity in  the goods market  is the existence of  imperfect  competition.  Imperfect comp

How does economic theory contribute to managerial decisions?

What is the difference between monopoly and perfect competition? Monopoly versus Perfect Competition: 1. Perfect competition is equal to monopoly competition, at the perfe

ECONOMIC EFFECTS OF TAXATION a.  A deterrent to work Heavy direct taxation, especially when closely linked to current earnings, can act as a serious check to production


No demand forecasting method is 100% accurate. Collective forecasts develop precision and reduce the probability of huge mistakes.  Methods which relay on Qualitative Assessmen

Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest. stion..


Q. Construction of an explanatory model? Construction of a sample:   To apply multiple regression a large sample is generally essential (ideally between 2,000 to 15,000 indivi

PROGRESSIVE TAX A progressive income tax system is one where the higher the income, the greater the proportion paid in taxes.  This is effected by dividing the taxpayers' inco