econ.- employment (notes)

4 types of unemployment:

1. frictional: when people take time to find a job, change of jobs
2. seasonal: result of harvest schedule, vacations, or industries slow/shut down for a season
3. structural: when workers' skills don't match jobs available- technology > people
4. cyclical: rises during economic downturns & falls when economy improves

unemployment rate: % of labor force LOOKING for jobs but don't have one

full employment: level of employment reached when there is no cyclical unemployment

underemployment: working at a job where one is overqualified or working part time when full time is desired

discouraged worker: person who wants a job but has given up looking

consumer price index: determined by measuring price of standard group of goods meant to represent "market basket" of typical urban consumers

inflation: general increase in prices

3 causes of inflation: 

1. quantity theory: too much money in the economy
2. demand-pull: occurs when demand for goods exceeds existing supplies
3. cost-push: occurs when producers raise prices to meet increased costs

poverty threshold: income level below which income is insufficient to support family or household

5 causes of poverty: 

1. lack of education: high school dropouts can earn just above poverty line
2. location: racial minorities in inner city earn less
3. racial: whites earn more
4. gender discrimination: men earn more
5. economic shifts: people who lack education hired when economy is expanding & workers are hard to find--> lose jobs when economy slows down. decline in manufacturing, rise of technology 

income distribution: how nation's total income is distributed among population

income inequality: poor & rich
Lorenz curve: area between line of equality & curve = amount of inequality

income gap: gap between poor & rich due to differences in skills & education, inheritances

how to measure unemployed who are included in the unemployment rate: look at the 4 types of unemployment & count number of people who are looking for a job but don't have one

3 effects inflation can have: 

1. increase in real estate prices
2. raised wages, price of goods
3. services increase

who does it hurt & help?
hurts: buyers
helps: sellers & workers

4 socioeconomic groups more affected by poverty:

1. race & ethnic origin: poverty rate among African Americans & Hispanics = more than 2x Whites
2. type of family: single moms = poverty rate 6x more than 2 parent families
3. age: % of children in poverty > other age group
4. residence: people live in inner city 2x more than those living outside inner city 

3 anti-poverty policies:

1. enterprise zones: area where companies can locate free of certain local/state/federal taxes & restrictions
2. employment assistance: job training programs for workers w/o skills, minimum wage
3. welfare reform: provides for basic needs. block grants (federal funds given to states) = states responsible for programs. workfare = programs requiring work in exchange for temporary assistance