Unemployment

Match the following concepts with its definition:

1. Unemployment associated with normal turnover in the labour market.

2. A situation in which there is a mismatch between labour demand and labour supply, either on occupational, skills, or regional dimensions

3. A situation in which individuals may be without work, yet they desire work but are not classified as unemployed according to the official statistics.

a. Hidden unemployment

b. Frictional unemployment

c. Structural unemployment

The incidence of unemployment is

• The unemployment rate at a point in time.

• The gross flow from unemployment to employment

• The net flow from unemployment to out of the labour force state

• The proportion of individuals who become unemployed in any period

Risk-sharing is the basis for implicit contract.

• True

• False

Which of the following equation is correct?

Name one factor that determines optimal job search.