Thesis We begin by looking at some of the relevant facts that describe unemployment, such as, what unemployment is, the different types of unemployment and unemployment insurance. We then turn to the reasons why economies always experience some unemployment and the ways in which policymakers can help the unemployed. Explanations for the economy's natural rate of unemployment: minimum-wage laws, unions, efficiency wages, and job search. I. Unemployment A. What is unemployment? B. Why is there unemployment? C. Measuring unemployment D. Fighting unemployment E. How long are the unemployed without work? II. Different Types of Unemployment A. Normal unemployment i. Seasonal unemployment B. Structural unemployment i. Technological unemployment C. Deficient demand unemployment III. Unemployment Insurance A. How it works IV. Minimum-Wage Laws V. Unions and Collective Bargaining VI. The Theory of Efficiency Wages A. Worker health B. Worker turnover C. Worker effort D. Worker Quality VII. Job Search Losing a job can be the most distressing economic event in a person's life. Most people rely on their labor earnings to maintain their standard of living and many people get from their work not only income but also a sense of personal accomplishment. A job loss means a lower living standard in the present anxiety about the future and reduced self-esteem. It is not surprising, therefore, that politicians campaigning for office often speak about how their proposed policies will help create jobs. We begin by looking at some of the relevant facts that describe unemployment, such as, what unemployment is, the different types of unemployment and unemployment insurance. We then turn to the reasons why economies always experience some unemployment and the ways in which policymakers can help the unemployed. Explanations for the economy's natural rate of unemployment: minimum-wage laws, unions, efficiency wages, and job search.
