1. Copyright © 2004 South-Western 28 Unemployment and Its Natural Rate

2. Copyright © 2004 South-Western Identifying Unemployment 2 Categories of Unemployment ： LR and SR 1.long-run: natural rate of unemployment ( 自然失業率 ) the amount of unemployment that the economy normally experiences.

3. Copyright © 2004 South-Western Identifying Unemployment 2. short-run: cyclical rate of unemployment ( 景氣型失業 ) fluctuations in unemployment around its natural rate. associated with short-term ups and downs of the business cycle.

4. Copyright © 2004 South-Western 勞動力之分類

5. Copyright © 2004 South-Western Measurement of Unemployment 人力資源調查：名詞與定義 民間人口：在資料標準週內年滿十五歲。 勞動力（ Labor Force ， LF ）： 可以工作之民間人口，包括就業者及失業者。 就業者（ the Employed ， E ）： 從事有酬工作者，或從事十五小時以上無酬家屬工作者。 失業者（ the Unemployed ， U ，「狹義失業人口」）： 同時具有： （１）無工作；（２）隨時可以工作；（３） 正在尋找工作或已找工作在等待結果。尚包括等待恢復工 作者及找到職業而未開始工作亦無報酬者。

6. Copyright © 2004 South-Western 勞參率與失業率 非勞動力（ not in the LF ）： 不屬於勞動力之民間人口，包括因就學、料理家務 、高齡、身心障礙、想工作而未找工作及其他原因 等而未工作亦未找工作者。 勞動參與率 (labor-force participation rate) ： = 勞動力 / 十五歲以上民間人口 失業率 (unemployment rate) ： = 失業者 / 勞動力

7. Copyright © 2004 South-Western 廣義失業率 廣義失業人口：「狹義失業人口」 加上「非勞動力中想工作而未找工作者」。 後者：非勞動力人口中有工作意願 但無尋職行動之人口： Discouraged Worker （喪志勞工） 廣義失業率 = 廣義失業人口 /( 勞動力 + 喪志勞工 )

8. Figure 28.1 Taiwan: The Breakdown of the Population in 2007 Copyright©2003 Southwestern/Thomson Learning Adult Population ( 1839.2 萬 ) Labor Force ( 1071.3 萬 ) Employed 1029.4 萬 Not in labor force （ 767.9 萬） Unemployed (41.9 萬 )

9. Table 28.1 Taiwan: the Labor-Market Experiences of Various Demographic Groups Copyright©2004 South-Western 平均值平均值 勞參 率 男性 勞參 率 女性 勞參 率 實質 GDP 成長 率 -2006 廣義 失業 率 失業 率 大學 以上 學歷 失業 率 20-24 歲失 業率 1978-200758.6672.6544.666.783.842.612.886.54 1978-90 59.3076.0242.468.362.901.952.575.02 1991-00 58.5471.6945.396.353.282.172.485.78 2001-07 57.6567.7747.684.096.384.454.0310.48

10. Copyright © 2004 South-Western Taiwan: unemployment rate

11. Copyright © 2004 South-Western SR: U and GDP ， Deviations from Trends

12. Copyright © 2004 South-Western Taiwan: labor participation rate

13. Copyright © 2004 South-Western Duration of Unemployment ( 失業期間 ) Most people who become unemployed find work within a short period of time ： Most spells of unemployment are short. Most unemployment observed at any given time is attributable to a few people who are unemployed for long periods of time.

14. Copyright © 2004 South-Western Taiwan: Duration of Unemployment 失業率 / 失業期間 1999200020012002200320042005 失業率 2.922.994.575.174.994.444.13 平均失業週數 ( 週 ) 23.024.725.729.331.130.529.4 長期失業人數 (53+ 週，萬人 ) 3.03.95.89.410.5 8.7 占全體失業者 比率 (%) 10.914.314.118.821.020.819.1

15. Copyright © 2004 South-Western LR Unemployment: Why Are There Always Some People Unemployed? In a perfectly competitive labor market, wages adjust to balance the supply and demand for labor, ensuring that all workers would be fully employed. But this is not true in reality. LR natural rate of unemployment = Frictional unemployment （摩擦性失業） ＋ Structural Unemployment ( 結構性失業 )

16. Copyright © 2004 South-Western 1. Frictional Unemployment It takes time for workers to search for the jobs that are best suit their tastes and skills. Frictional Unemployment : the unemployment that results from the time to match qualified workers (U) with appropriate jobs (V).

17. Copyright © 2004 South-Western Frictional Unemployment U: ( 失業者 ) 找事的人， V ： Vacancy 缺工（空缺） U=V （一個蘿蔔一個坑） 失業者最終都可以找到事，只是需費時去配對 -- It is not caused by a wage rate higher than equilibrium. （參考 Fig28.3 ：課本較廣義的結構性失業）

18. Copyright © 2004 South-Western 2. Structural Unemployment 窄義的結構性失業 Changes in the composition of demand among industries or regions are called sectoral shifts. （產業結構變遷） For some sectors, U i > V i ， and for the others, V j > U j ， but U i have no skills for the jobs in sector j.

19. Copyright © 2004 South-Western Structural Unemployment It takes time for workers to receive the appropriate training, search for and find jobs in new sectors. often thought to explain longer spells of unemployment. Government programs can affect the time it takes unemployed workers to find new jobs.

20. Copyright © 2004 South-Western Public Policy related to Job Search 3 programs: ( 勞委會 ) (1)Government-run employment agencies give out information about job vacancies in order to match workers and jobs more quickly. --- 公立就業服務機構 (2) Public training programs aim to ease the transition of workers from declining to growing industries and to help disadvantaged groups escape poverty. --- 職業訓練局

21. Copyright © 2004 South-Western Public Policy related to Job Search (3) Unemployment insurance （失業保險）： a government program that partially protects workers’ incomes when they become unemployed. 台灣失業保險制度 1999 年：勞工保險開辦失業給付業務， 2003 年：「就業保險法」， 包含就業服務、職業訓練及失業保險三者。 勞委會網站： http://www.cla.gov.tw/cgi-in/SM_theme?page=416f8419

22. Copyright © 2004 South-Western Public Policy related to Job Search The impacts of Unemployment insurance: It reduces the search efforts of the unemployed and increases the amount of search unemployment. It may improve the chances of workers being matched with the right jobs. 台灣另外： (4) 勞動基準法： 保障勞工權益，但造成勞資契約的僵固性。  新制可攜式勞退基金 （ 2005 年 7 月施行）  避免廠商關廠倒閉損害勞工權益， 並增加中老年齡就業機會

23. Copyright © 2004 South-Western 3 Reasons for Structural Unemployment 較廣義的結構性失業（課本） Structural unemployment : Ls > Ld when w > w* the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one. occurs when the quantity of labor supplied exceeds the quantity demanded. caused by a wage rate higher than equilibrium.

24. Copyright © 2004 South-Western 1. Minimum-Wage Laws 3 reasons for structural unem: 1. Minimum-wage laws 2. Unions 3. Efficiency wages Minimum-Wage Laws ：最低工資法 When the minimum wage is set above W*, it creates unemployment. --- (Nominal) Wage Rigidity ( 工資僵固性 )

25. Fig 28.4 Unemployment from a Wage Above the Equilibrium Level Copyright©2003 Southwestern/Thomson Learning Quantity of Labor 0 Surplus of labor = Unemployment Labor supply Labor demand Wage Minimum wage LDLD LSLS WEWE LELE

26. Copyright © 2004 South-Western 2. Unions and Collective Bargaining A union ( 工會 ) is a worker association that bargains with employers over wages and working conditions. 1940s and 1950s, unions were at their peak, 1/3 of U.S. labor force was unionized. A union is a type of cartel attempting to exert its market power. collective bargaining ： the process by which unions and firms agree on the terms of employment. （集體議價）

27. Copyright © 2004 South-Western Unions and Collective Bargaining By acting as a cartel with ability to strike or otherwise impose high costs on employers, unions usually achieve above-equilibrium wages for their members. A strike ( 罷工 ) refers to when the union organizes a withdrawal of labor from the firm. Union workers earn 10 to 20 percent more than nonunion workers. Workers in unions (insiders) reap the benefits of collective bargaining, while workers not in the union (outsiders) bear some of the costs.

28. Copyright © 2004 South-Western Are Unions Good or Bad for the Economy? Critics argue that unions cause the allocation of labor to be inefficient and inequitable. Advocates of unions claim that unions are important for helping firms respond efficiently to workers’ concerns. eg, 法國 2006/2 ， 反對「首次雇用契約」就業法案的抗議遊行。 eg, 台灣 2005/9 抗議合併，中小企業銀行員工罷工。

29. Copyright © 2004 South-Western 3. The Theory of Efficiency Wages Profits = P*F(E(ω), K)- ωL – other costs E: effective labor ， ω: wages ， L: labor quantity A firm may prefer higher than equilibrium wages for the following 4 reasons: (1)Worker Health: Better paid workers eat a better diet and thus are more productive.  Increase effective labor and labor productivity (2) Worker Quality: Higher wages attract a better pool of workers to apply for jobs.  Increase effective labor and labor productivity

30. Copyright © 2004 South-Western The Theory of Efficiency Wages (3) Worker Turnover: A higher paid worker is less likely to look for another job.  reduce firm’s hiring and training costs. (4) Worker Effort: Higher wages increase the opportunity costs of shirking and give workers an incentive to put forward their best effort.  Reduce firm’s monitoring costs. eg, Henry Ford and $5-a-day Wage (1914) Efficiency Wage ： Real Wage Rigidity

31. Copyright © 2004 South-Western Summary Labor force participation rate Unemployment rate Discouraged workers Duration of unemployment Natural rate of unemployment Frictional unemployment Structural unemployment Minimum Wages Union and Collective Bargaining Efficiency Wages