Structural unemployment, Managerial Economics

Structural unemployment  

Caused by structural changes such that there exist:

  • Cyclical unemployment: During depression, prices are too low and profit margins remain distinctively low. In this case, investment decreases and unemployment increases.
  • Technological unemployment: Due to inappropriate technology. Technology is not inappropriate per se but in relation to the environment in which it is applied. In most developing countries, most production structures tend to be labour saving (capital-intensive), which is not appropriate as these countries experience high labour supply. Capital - labour ratios tend to be high in these countries implying that less labour is absorbed compared to capital in production undertakings causing unemployment.
  • Industrial change: The establishment of new industries decreases the demand for the products of existing industries e.g. the rapid increase in the demand for Japanese industrial products is one reason for greater unemployment in some European countries.
Posted Date: 11/30/2012 2:35:44 AM | Location : United States







Related Discussions:- Structural unemployment, Assignment Help, Ask Question on Structural unemployment, Get Answer, Expert's Help, Structural unemployment Discussions

Write discussion on Structural unemployment
Your posts are moderated
Related Questions
Q. What is Marketing Economies? They are allied with selling of the product of the firm. They arise from advertising economies. Because advertising expenses increase less than

Classification of oligipoly

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

The individual and market demand curves The quantities and prices in the demand schedule can be plotted on a graph. Such a graph after the individual demand schedule is called

Limitation The degree or success with which the central bank can use its bank rate policy to control the total credit in the economy depends upon the interest elasticity of in

Imagine an amusement park with a sole attraction: a roller coaster. For simplicity, the cost of providing a ride is zero. There is a single consumer with demand for rides on the ro

In this question you will consider the impact on the building industry of the earthquake. Two construction and materials indices have been provided for the analysis.  If your famil

Mankiw Model of Nominal Rigidities   There are two related reasons for which  firms do not  frequently change prices. First, as we saw in the discussion on menu costs, the cost

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2.

Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd=100-3P. The annual market supply is given by Qs=P. In both