Module 13: The natural rate of unemployment Flashcard Example #43399

structural unemployment
unemployment that results when workers lack the skills required for the available jobs, or there are more people seeking jobs in a labor market than there are jobs available at the current wage rate.
efficiency wages
wages that employers set above the equilibrium wage rate as an incentive for better employee performance.
the natural rate of unemployment
the unemployment rate that arises from the effects of frictional plus structural unemployment; CAN NEVER EQUAL ZERO
Cyclical unemployment
the deviation of the actual rate of unemployment from the natural rate.
job search
Workers who spend time looking for employment are engaged in job search.
Frictional unemployment
unemployment due to the time workers spend in job search.

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