Username Password

Save on Textbooks! Other   Other Homework Help ( 1213 ) Math   Math- Algebra 1 ( 2437 )   Math- Algebra 2 ( 1189 )   Math- Calculus ( 381 )   Math- Geometry ( 594 )   Math- Other ( 1522 )   Math- Precalculus ( 408 )   Math- Trigonometry ( 285 ) Biology   Biology- Animal ( 155 )   Biology- Cell ( 530 )   Biology- Ecological ( 109 )   Biology- General ( 651 )   Biology- Microbiology ( 100 ) Business   Business- Accounting ( 674 )   Business- Finance ( 511 )   Business- Other ( 454 ) Chemistry   Chemistry- Biochem ( 162 )   Chemistry- Organic ( 166 )   Chemistry- Other ( 1330 ) Economics   Economics- Macroeconomics ( 829 )   Economics- Microeconomics ( 610 ) Essay Service   Essay Correction ( 96 )   Essay Writing ( 396 ) History   History- World ( 831 )   US History- Post 1877 ( 472 )   US History- Pre 1877 ( 347 ) Language   English ( 829 )   Foreign Languages ( 118 )   World Literature ( 196 ) Physics   Physics- Electricity, Magnetism ( 248 )   Physics- General ( 1738 )   Physics- Mechanical, Heat, Sound ( 343 )   Physics- Wave, Quantum Physics ( 114 ) z Medical Questions Your Question Consider a labour market where there are two types of jobs, good jobs and bad jobs. Good jobs pay a higher wage than bad jobs (wG > wB). The unemployment compensation is such that both types of jobs are preferred to unemployment. Let N : The fixed number of workers in an economy u : The steady-state number unemployed nG : The steady-state number employed in a good job nB : The steady-state number in a bad job λ : The probability per period a job offer is received by an unemployed worker 0.5: The probability an offer received is from a firm offering a good job (bad job). δG : The probability per period a worker employed in a good job is made unemployed δB : The probability per period a worker employed in a bad job is made unemployed Assume δG > δB . (a) [5 marks] Derive an expression for the steady-state number unemployed. (b) [5 marks] Derive an expression for the steady-state number employed in bad jobs. (c) [5 marks] Derive an expression for the steady-state number employed in good jobs. Suppose now that there is an increase in the arrival rate of job offers to λ1 (λ1>λ). The increase in the arrival rate of offers makes unemployed workers more selective in accepting offers. So much so that they now reject bad job offers - preferring to wait for a good job offer. (d) [5 marks] Derive an expression for the steady-state number unemployed when bad job offers are rejected. (e) [5 marks] Derive an expression for the steady-state number employed when bad job offers are rejected. Please Login to Answer the Question LOGIN

wireless broadband  Online Courses | Cheap Car Insurance  |  CRM  |   Copyright © 2003-2009 StudentQuestions.com Terms of Service | Resources