Which one of these factors plays a role in determining the extent and duration o
ID: 1203383 • Letter: W
Question
Which one of these factors plays a role in determining the extent and duration of frictional unemployment?
the education and skill levels of labor force participants
the extent to which government legislation requires firms to provide health insurance for employees
the degree to which the overall level of business activity fluctuates up and down
the ease with which job seekers can obtain information about job openings
the education and skill levels of labor force participants
the extent to which government legislation requires firms to provide health insurance for employees
the degree to which the overall level of business activity fluctuates up and down
the ease with which job seekers can obtain information about job openings
Explanation / Answer
Frictional unemployment exists because both jobs and workers are heterogeneous, a mismatch related to skills, payment, worktime, location, attitude, taste, and a multitude of other factors between the supply and demand. Frictional unemployment is also known as search unemployment as it is the period of time between jobs when a worker is searching for or willing to shift from one job to another. Frictional Unemployment is influenced by voluntary decisions comparing the wage rates and the work he is looking at.results from imperfect information and the difficulties in matching qualified workers with jobs. A college graduate who is actively looking for work is one example. Frictional unemployment is almost impossible to avoid, as neither job-seekers nor employers can have perfect information or act instantaneously, and it is generally not seen as problematic to an economy. For example, a first time job seeker may lack the resources to find the company that would provide the job which is suitable to him or her, so, he may not take other work and remain till he gets the better paying job. Another example, when a company abstains from hiring because it believes there are not enough qualified individuals available for the job, when in actuality there is.Frictional unemployment is when workers leave their jobs to find better ones. It's usually thought of as a voluntary exit, but can also occur as a result of a layoff or termination with cause. The time, effort, and expense it takes to find these new jobs is known as friction.Frictional unemployment is actually a benefit for the economy. It allows companies the opportunity to find qualified workers. If there were no unemployment if everyone stayed in their jobs until they found a new one, it would be more difficult, time-consuming and expensive for companies to bring on good workers. Labor costs would rise, creating cost-push inflation. On the other hand, worker pay would rise thus reduce income inequality. The job seeker will search for a job based on his educational qualifications and the skill he has in doing the particular job, It is just a voluntary unemployment. It is helpful for the job seeker to find the job that satisfies him and the company to get the skilled and efficient worker. So, the first factor the education and skill levels of labor force participants plays a role in frictional unemployment
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