For this box you will analyze the labor market before, during, and after the financial crisis.

You will analyze the 2006-2016 period; these are the years that have the same unemployment rates that book-end the period, 4.7% in both January of 2006 and in December of 2016.

- Go to BLS.gov and look for 1) the Unemployment Rate; 2) Labor Force Participation Rate; and 3) hours of work (search: total private average weekly hours of all employees), this one is available starting from March of 2006.

The purpose of this box is to document and explain these three indicators [25 points each indicator] during the Great Recession and unify the three measures into a unified description of the labor market in the context of the financial crisis [25 points].

The participation rate and hours correspond to the extensive and intensive margins, respectively. The "extensive margin" refers to whether or not to work, and the "intensive margin" refers to how many hours, once one has decided to work (in line with the labor-leisure model of the household).

The box should reflect your familiarity with the concepts and the definitions. And, as always, the charts should have a title and have the axis labeled (with time in x-axis, and label variable(s) and units in the y-axis).

SHORTCUT:

The Federal Reserve Bank of St. Louis compiles and stores economic data from many sources, including the Bureau of Labor Statistics. One-stop shopping for the data in this box can be found here:

https://fred.stlouisfed.org/Links to an external site.

The series are:

- Unemployment Rate (UNRATE)

- Labor Force Participation Rate (CIVPART)

- Average Weekly Hours of All Employees, Total Private (AWHAETP)

You can use the ready-made charts from FRED, though I encourage you to develop further your graphing and communication skills in Excel.

Tips

Are we looking for a graph for each variable and analyze the information? Yes.

Please provideone graph for each of the indicators. Tables are not good for this Box because it's difficult to visualize changes in the numbers across time. Remember to label the graphs thoroughly (axis and title). Be sure to connect the co-movement of these variables as the Financial Crisis developed.

The focus of this Box is on the Great Recession, which occurred from the end of 2007 to the middle of 2009 (officially, December 2007 to June 2009). The theory component is the one-period model discussed in the video and in pages 90-96 of the textbook. Ask yourself, for which of the series is the theory better suited to explain the patterns in the data?

How can I find the information for 2006-2016?

To obtain the data forhours of labor follow the link below. In the table just tick on 'Total private'.

https://www.bls.gov/webapps/legacy/cesbtab2.htmLinks to an external site.

The link to theunemployment rateis on the right side of the home page of theBureau of Labor StatisticsLinks to an external site.(link underLatest Numbers). TheLabor Force Participation Ratecan be found in just one step from thesearch fieldin the top right corner of the BLS homepage. The website provides definitions and explanations of how these rates are computed.

Use only seasonally adjusted data. The seasonal adjustment removes changes in the data that are caused purely by regular annual events (for example, higher spending during summer time, the increase in employment and hours worked during Christmas). That way, we can make more meaningful comparisons, without the noise of such variations through the year, and see how the labor market is doing.

You can also take theSHORTCUTto the ready-made graphs at the bottom of the Assignment's instructions and use them in your Box without point penalty.

As before, the Box assignment is not a research paper so there should beno outside references, and the context is always provided in the assignment's instructions, so except for the source of the data there should be no citations in the Box.

For this box you will analyze the labor market before, during, and after the financial crisis. You will analyze the 2006-2016 period; these are the years that have the same unemployment rates that book-end the period, 4.7% in both January of 2006 and in December of 2016. - Go to BLS.gov and look for 1) the Unemployment Rate; 2) Labor Force Participation Rate; and 3) hours of work (search: total private average weekly hours of all employees), this one is available starting from March of 2006. The purpose of this box is to document and explain these three indicators [25 points each indicator] during the Great Recession and unify the three measures into a unified description of the labor market in the context of the financial crisis [25 points]. The participation rate and hours correspond to the extensive and intensive margins, respectively. The \"extensive margin\" refers to whether or not to work, and the \"intensive margin\" refers to how many hours, once one has decided to work (in line with the labor-leisure model of the household). The box should reflect your familiarity with the concepts and the definitions. And, as always, the charts should have a title and have the axis labeled (with time in x-axis, and label variable(s) and units in the y-axis). SHORTCUT: The Federal Reserve Bank of St. Louis compiles and stores economic data from many sources, including the Bureau of Labor Statistics. One-stop shopping for the data in this box can be found here: https:/fred.stlouisfed.org/ &> The series are: - Unemployment Rate (UNRATE) - Labor Force Participation Rate (CIVPART) - Average Weekly Hours of All Employees, Total Private (AWHAETP) You can use the ready-made charts from FRED, though | encourage you to develop further your graphing and communication skills in Excel. Tips Are we looking for a graph for each variable and analyze the information? Yes. Please provide one graph for each of the indicators. Tables are not good for this Box because it's difficult to visualize changes in the numbers across time. Remember to label the graphs thoroughly (axis and title). Be sure to connect the co-movement of these variables as the Financial Crisis developed. the Assignment's instructions and use them in your Box without point penalty. As before, the Box assignment is not a research paper so there should be no outside references, and the context is always provided in the assignment's instructions, so except for the source of the data there should be no citations in the Box. Grading The assignment will be graded as follows: Subtract 10 points if the narrative is not connected to the data; that is, it does not refer to specific numbers in the graphs. Subtract 25 points for missing part(s) as stated in the assignment's instructions. Subtract 10 points if there is weak connection between the theory and the data in the integration of the three indicators and the labor-leisure decision model. Subtract 10 points for each missing graph. Subtract 30 points if the assignment is short of 500 words