Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please try to explain this diagram clearly. thanks! Fig. 6.6 Labour market flows N (s + Z)f N Ns (1-f) A Uf OLF Note: The

Please try to explain this diagram clearly. thanks!

image text in transcribed
Fig. 6.6 Labour market flows N (s + Z)f N Ns (1-f) A Uf OLF Note: The notation is explained in Section 6.2. N is employment, U is unemployment and OF is the stock of workers outside the labour force. The probability to find a job is f for an employed job seeker is and if for an unemployed job seeker. A share Z of the employed workers seek another job and switch if they find one. A fraction s of the employed workers leave their jobs for exogenous reasons and seek another job. Thus the flow from unemployment to employment is ALIf, the turnover between jobs is N (s + Z)f, and the flow from employment to unemployment is Ns (1-f)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How The Old World Ended The Anglo-Dutch-American Revolution 1500-1800

Authors: Jonathan Scott

1st Edition

0300249365, 9780300249361

More Books

Students also viewed these Economics questions

Question

Define positive thinking and cite its benefits.

Answered: 1 week ago

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago