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Explain about the term underemployment and unemployment rate.
Discouraged employees are non-working people who are able of working although are not actively in search of a job.
Underemployment:
It is the number of people who work throughout a recession although receive lower wages than they would throughout an expansion because of smaller number of hours employed, lower-paying jobs, or both.
The unemployment rate:
It is the ratio of the number of people unemployed to the whole number of people into the labor force, either recently working or search for jobs.
In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r
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What is Employment and Unemployment? Employment and Unemployment: Employment: It is the number of people working within the economy. Unemployment: It is the nu
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