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Forecast for the steady-state level of unemployment

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In Frictionlandia, the monthly job separation rate is s = 0.1 and the monthly job-?nding rate is f = 0.2 per month. A website that allows jobseekers to post their CVs online is established, which increases f to 0.35.

Now assume that s includes people quitting as well as being laid o? involuntarily. Do you think s will change after f increased? If we take the change in s into account, what is your (qualitative) forecast for the steady-state level of unemployment?

Reference no: EM132489436

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