economics. 250 words Initial post and two 75 words reply

Jie Lin 

RE: Week 6 Discussion

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3.  Are minimum-wage laws a better explanation for structural unemployment among teenagers or college graduates? Why?  No, minimum wage laws do not explain structural unemployment among teenagers. Among the college graduates,  as industrial reorganization is the primary factor causing structural unemployment, where this is as a result of changes occurring in innovation and technology. Therefore, the forces of supply and demand do not affect this, and even with the laws in place, such unemployment would still exist, as it mostly occurs when an economy is at full employment.  Minimum wage laws would relate to the forces of law and demand, rather than technological changes and modifications. As a result, there is no correlation between such rules and structural unemploymen

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Yi Wu 

RE: Week 6 Discussion

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Question Two: Why is frictional unemployment inevitable? How might the government reduce the amount of frictional unemployment?

Frictional unemployment is inevitable as the economy is continuously growing and changing. Some industries might be shutting down while others are expanding. There are changes in demand for labor among different firms, changes in the composition of demand among industries or regions, and there are changing patterns of international trade in that workers need to move among industries. Regional variations in the pace of economic growth are also very common. The government can reduce the amount of frictional unemployment by publicizing the available vacancies in the different industries and also by undertaking training programs in order to enable a smooth and quick transition of workers from one job to the other.

 

Question Three: Are minimum-wage laws a better explanation for structural unemployment among teenagers or among college graduates? Why?

Minimum wage laws are a better explanation of structural unemployment in the case of teenagers. This is because college graduates, in general, possess sufficient skill sets and are well equipped to find a good-paying job whereas teenagers with no formal graduate education find it difficult to find a good-paying job and thus end up working for low wages. Minimum wage laws, thus, might affect their employment opportunities.

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