Significance of concept and theory of search unemployment, Managerial Economics

Assignment Help:

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. 


Related Discussions:- Significance of concept and theory of search unemployment

Explain the diminishing marginal utility, Diminishing Marginal Utility ...

Diminishing Marginal Utility Diminishing marginal utility as well is to be held responsible for the rise in demand for a product when its price declines. When an individual pur

Determine the theory of consumer behaviour, Theory of consumer behaviour ...

Theory of consumer behaviour The role of customers in an economy is of significant importance because consumers spend most of their incomes on services and goods produced by fi

Demand, what is demand estimation

what is demand estimation

Projection method of demand forecasting, Explain trend projection method of...

Explain trend projection method of demand forecasting with illustration.

expected profit, The Learned Book Company has a choice of publishing one o...

The Learned Book Company has a choice of publishing one of two books o the subject of Greek mythology.  It expects the sales period for each to be extremely short, and it estimates

HHI, Suppose Fiat recently entered into an Agreement and Plan of Merger wit...

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel- Drive tractors consisted of five firm

Characteristics of the three stages of diminishing returns, CHARACTERISTICS...

CHARACTERISTICS OF THE THREE STAGES   Stage I Here the Total Physical Product, Average Physical Product and Marginal Physical Product are all increasing.  However MPP

Price elasticity and marginal revenue, The most significant uses of the pri...

The most significant uses of the price elasticity of demand, used specifically in business decision-making. It refer to the relationship between price elasticity and the marginal c

The governed economy, THE GOVERNED ECONOMY The governed economy contai...

THE GOVERNED ECONOMY The governed economy contains central authorities often simply called "the government" - who levy taxes on firms and households and which engages in numer

Theory of consumer behavior, • Budget constraint, budget line, budget set, ...

• Budget constraint, budget line, budget set, Budget constraint is a very important concept in economics and is utilized even in advanced economic theory. Let the competent tutors

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd