ECN 211 Assignment 2
Structural and cyclical unemployment.
25 points
1. Define structural unemployment. (3 points)
2. Define cyclical unemployment. (3 points)
Read the article: Has Structural Change Contributed to a Jobless Recovery? – Federal
Reserve Bank of New York.
http://www.newyorkfed.org/research/current_issues/ci9-8/ci9-8.html
3. If jobs are lost permanently, even during a recession, is that structural or cyclical unemployment? (3 points) Why? (8 points)
4. Why would it take longer to create a new job rather than rehire for an
old job? (8 points)
Please type up your answers and keep them to a page or two. If you prefer, you can e-mail me your assignment.
Another useful article: Economic Restructuring in New York State
http://www.newyorkfed.org/research/current_issues/ci10-7.html
When economic activity slows down, labor markets may undergo extensive structural change—the permanent reallocation of workers across industries. Job losses can be heavy...