Theory Of Unemployment Research Articles

Asymmetrical Monetary Relations and Involuntary Unemployment in a General Equilibrium Model

Abstract This article aims to model Keynesian involuntary unemployment within the framework of Walrasian general equilibrium, incorporating an additional hypothesis: the possibility of credit restrictions by banks or financial intermediaries. Keynes’s theory of involuntary unemployment is based on the rejection of the “second classical postulate,” which leads to the idea that entrepreneurs alone decide the level of employment. This is what some Keynesians call the asymmetry of the wage relationship. The result is a restriction of Walras’ law, which no longer includes the labor market. However, the problem is that entrepreneurs themselves may find themselves constrained by financial intermediaries. If there is a second type of asymmetry, i.e., between banks/financial intermediaries and entrepreneurs, Walras’ law will be doubly restricted since it will also exclude the credit market. I set out to identify the consequences of the properties of involuntary unemployment in a general equilibrium model.

Is Any Job Better Than No Job? Utilising Jahoda’s Latent Deprivation Theory to Reconceptualise Underemployment

Underemployment is a widely discussed but complex concept. This article progresses discussions and provides a new sociological conceptualisation. It builds on a classic theory of unemployment, Jahoda et al.’s ‘latent deprivation theory’ (LDT), that identified five ‘latent functions’ provided by jobs, besides a wage: time structure, social relations, sense of purpose/achievement, personal identity and regular activity. LDT was ground-breaking in illuminating previously hidden injuries of joblessness. This article proposes that LDT can be similarly ground-breaking for reconceptualising underemployment: it demonstrates conceptually the multiple ways in which the mere existence of a job is insufficient in protecting individuals from socially and psychologically negative impacts associated with unemployment. A sociology of underemployment can help better understand complex, shifting and precarious work and expose inherent forms of suffering and injustice.

Human Capital Development and Unemployment in Uganda: The Keynesian Theory of Unemployment in Perspective

Human Capital Development and Unemployment in Uganda: The Keynesian Theory of Unemployment in Perspective

JOB CREATORS OF FRESH GRADUATES IN TECHNICAL INSTITUTIONS

Objective: The main objective of this research is to explore the elements of technical graduates who want to create their own jobs after graduated. Theoretical Framework: The study aims to list down the elements of technical graduates who want to create their own jobs using Delphi Technique. Kajian ini menggunakan Entrepreneurship Theory, Supply and Demand Theory, Human Capital Theory, Innovation Theory dan Structural Unemployment Theory sebagai asas dalam pembangunan kerangka tersebut. Design/Methodology/Approaches: This study uses primary data where elements are obtained from articles, journals, books related to entrepreneurship, career, and employability. The approach used in this study is quantitative and the Delphi Technique has been applied in collecting and validating the collected elements. The quantitative approach used is to use a cross-sectional survey design where a set of questionnaires has been distributed to 331 graduates in technical fields in Malaysia to answer the main purpose of the study which is to identify students' perceptions of 17 elements that have been confirmed by experts and to find if there are a significant relationship between parents' occupational background to these 17 confirmed elements among students. Findings: The data obtained was analysed using descriptive and inferential statistical analysis, which is Mean, Median, Interquartile Range and Standard Deviation to answer each stated research objective. Overall, technical graduates have an average perception of the elements of creating a job. They lack this element in themselves as a job creator. The conclusion of this research, it is hoped that the interest groups involved in curriculum development, the administrators as well as the students themselves can improve themselves with skills and business knowledge so that the spirit of entrepreneurship increases among students and at the same time can reduce the unemployment rate and matching in the job and the business field that is engaged with the field that have been studied in institution. Originality/Value: This study is more relevant and practically applied to education institutions who want to offer new programs to graduates and create courses or programs related to student competence.

Labor Market Flexibility and Unemployment: A Study of the United States

Purpose: The aim of the study was to investigate the labor market flexibility and unemployment: a study of the United States
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The study on Labor Market Flexibility and Unemployment in the United States found that while flexibility can foster job creation, it also exacerbates structural unemployment. Certain groups, like minorities and low-skilled workers, are disproportionately affected. Additionally, technological advancements and globalization reshape the labor market. Labor market institutions play a crucial role in mediating flexibility's impact. Overall, nuanced policy interventions are needed to address unemployment challenges.
 Unique Contribution to Theory, Practice and Policy: Structural unemployment theory, dual labor market theory & institutional theory of labor markets may be used to anchor future studies on the labor market flexibility and unemployment: a study of the United States. Practical recommendations could include fostering a supportive environment for entrepreneurship and innovation, enhancing access to lifelong learning and skill development opportunities, and implementing targeted measures to support vulnerable groups in the labor market. From a policy perspective, the study should advocate for evidence-based policymaking that prioritizes the promotion of inclusive growth and social cohesion.

Do Entrepreneurship Education and Family Experience Promote Student's Entrepreneurial Intention? The Mediating Role of Unemployment Rate : An Integrated Analysis through Entrepreneurship Theory, Social Learning Theory, and Hidden Unemployment Theory

Do Entrepreneurship Education and Family Experience Promote Student's Entrepreneurial Intention? The Mediating Role of Unemployment Rate : An Integrated Analysis through Entrepreneurship Theory, Social Learning Theory, and Hidden Unemployment Theory

Assessing the Impact of Foreign Direct Investment on Unemployment Rate in Nigeria

Recent studies have shown that high rate of unemployment as currently witnessed in Nigeria, is one of the factors that can undermine the attainment of goal eight (Decent work and Economic growth) of Sustainable Development Goals (SDGs) by year 2030. Since foreign direct investment (FDI) is an important factor in creating jobs and improving economic growth, it is considered a veritable tool for reducing the unemployment level. Although there have been studies on FDI and unemployment in literature, there is hardly any study on the impact of FDI on rural and urban unemployment. The study pursued threefold objectives which are to ascertain the impact of FDI on aggregate unemployment in Nigeria; to examine the impact of FDI on urban unemployment rate in Nigeria and to determine the impact of FDI on rural unemployment in Nigeria. The study utilized data from 1990 to 2020 as well as dynamic ordinary least squares (DOLS) which eliminates problems of endogeneity and serial correlation. The theoretical framework of the study is anchored on the Keynesian theory of unemployment. The result obtained showed that FDI has a significant impact on aggregate and urban unemployment in Nigeria. However, FDI did not impact significantly on rural unemployment in Nigeria. To effectively use FDI to reduce unemployment, the Nigerian government needs to create an enabling business environment, including favorable investment policies, streamlined regulatory procedures, and infrastructure development plans. Encouraging collaboration between foreign investors and local stakeholders, promoting technology transfer, and implementing strategies to enhance the skill levels of the local workforce are also important aspects to consider.

Calculation and Cause Analysis of Hidden Unemployment—A Case Study of the Northeast State-Owned Forest Areas in China

The Northeast State-owned Forest Areas comprise the largest region of resources in China. The transformation of the Northeast State-owned Forest Areas is due to various stimuli, such as policies, systems, and markets. In the context of ecological construction and the reform of the state-owned forest system in Northeast China, these have undergone a transformation in terms of economy, society, and ecology. However, a mismatch persists between employment and industrial structures, leading to hidden unemployment. This study employs the framework of hidden unemployment theory, utilizing the Cobb–Douglas production function to quantify the hidden unemployment rate, revealing the relationship between transformation and hidden unemployment. Through this analysis, the underlying causes of hidden unemployment in Northeast China’s state-owned forest regions are scrutinized. There is a bidirectional causal relationship between ecological transformation and hidden unemployment, while there is a unidirectional causal relationship between economic transformation and hidden unemployment. Variance decomposition analysis highlights the substantial contribution of social transformation, followed by economic transformation, with ecological transformation playing a comparatively smaller role. Based on the above research, this article proposes expediting the reforms within the forest industry groups, facilitating the separation of governmental and corporate interests. Additionally, it advocates for strategic forestry development planning to effectively absorb surplus labor, and proposes three policy directives aimed at supporting forest area employees, including provisions for job transfers and reemployment opportunities.

AGRICULTURAL SECTOR FINANCING AND EMPLOYMENT GENERATION IN NIGERIA

This study empirically evaluated the effect of financing the Nigeria’s agricultural sector on employment generation from 1990 to 2021. Theories adopted include: Financial Development Theory, Supply Leading Theory and Classical Theory of Unemployment. Annual time series data extracted from Central Bank of Nigeria’s statistical bulletin and World Bank’s World Development Indicators were used. The methodological processes of the ordinary technique of Least Squares (OLS) and the vector technique of Error Correction (VECM) Modelling were applied for estimations. The results from unit root’s tests showed all variables as stationary at I(1), that is orders one. Following this, the OLS and VECM estimates’ results established that agricultural sector received bank credits, government’s expenditures in the sector, Credit Guarantee Scheme Fund in agriculture and foreign aids in agricultural sector had short-run and long-run positively significant influences on employment generation while foreign direct investment in agricultural sector is insignificantly positive on employment generation. Sequel to the results, it is concluded that agricultural financing significantly contributes to employment generation in Nigeria. Therefore, suggested recommendations among others are that government’s expenditures in agricultural sector should be increased and other sources of financing for the sector be intentionally encouraged as such action will sustainably deepen agricultural sector’s performance, and consequently boost employment generation in Nigeria.

Malinvaud’s and Keynes’s unemployment typologies: do they coincide?

Malinvaud’s reconsideration of the theory of unemployment emphasises the distinction between classical and Keynesian unemployment equilibria, associating the former with excessive real wages and the latter with deficient effective demand. This distinction suggests a close proximity with the one established by Keynes between voluntary and involuntary unemployment. However, Malinvaud’s typology concerns two mutually exclusive regimes, whereas Keynes’s typology concerns two coexisting unemployment categories. Besides, the former rests on the implicit view of price rigidity as the troublemaker and of price flexibility as the ultimate policy target, whereas the latter follows from the opposition between refusal to cooperate and inability to coordinate, and points to different policy strategies.

Homeownership in the equilibrium unemployment theory

Purpose This theoretical study aims to clarify the (a priori) ambiguous effect of homeownership on unemployment. In general, in fact, homeownership discourages job mobility, but homeowners are less likely to be unemployed than tenants, since homeownership would seem to be positively related to human capital.Design/methodology/approach This study develops a modified version of the benchmark theoretic model of the labour market – the well-known “equilibrium unemployment theory” – where homeownership affects both the “Beveridge Curve” (BC, by means of job immobility) and the “Job Creation Condition” (JCC, by means of human capital).Findings The general result is that an increase in homeownership increases unemployment. Therefore, policymakers could encourage job mobility, before facilitating homeownership. This policy implication, however, may not apply in the case of high inflation and/or low nominal interest rate, and when the job destruction rate depends on the homeownership rate.Research limitations/implications The model studies the steady-state equilibrium of the labour market, so the policy implications only relate to the long-run. The model, therefore, does not consider the short-run effects of homeownership on unemployment (which may differ from the long-term results).Practical implications The model suggests a public policy characterised by large investment in rail lines and subsidised commuter fares. By promoting a more efficient allocation of workers across regions (and, thus, job mobility), indeed, this policy can be a good way to increase employment, without harming homeownership.Social implications The practical implication of this model is also a social implication, since it relates to homeownership and housing tenure.Originality/value To the best of author’s knowledge, this is the first model that introduces the key role of homeownership in the so-called “Equilibrium unemployment theory”. Precisely, the model uses a modified version of both the BC (which includes the negative effect of homeownership on the overall job search intensity of unemployed workers) and the JCC (which includes the positive effect of homeownership on both the business start-up and the human capital of workers). By comparing these two opposite effects, this theoretical work makes clearer the net effect of homeownership on unemployment.

UNEMPLOYMENT IN UKRAINE: CONTEMPORARY CHALLENGES

The article is devoted to the problem of unemployment in Ukraine. The essence of unemployment according to Ukrainian legislation has been defined. The theories of unemployment have been briefly described. Based on the statistical data of the State Employment Service, the number of unemployment and its dynamics in 2022 has been analyzed. The discrepancy between the actual number of unemployed and the registered number have been indicated. The number of unemployed has been analyzed in terms of types of economic activity. Based on the analysis of official data, a decrease in the number of unemployed in Ukraine has been noted. Analysis of the demand and supply of labor force have been conducted. With this aim the number of vacancies and the number of unemployed as of November 1, 2022 have been compared. The presence of a significant imbalance between the demand and the supply of labor force has been noted. Thus, it has been investigated that 7 officially registered unemployed are applying for one job.

From Workplace to Joblessness: The Determinants of Post-Internship Graduate Unemployment in South Africa

One of the pressing concerns for governments and policy makers across the world is youth unemployment. What is even more devastating is the growing graduate unemployment, particularly in developing countries, and South Africa is no exception. Graduate unemployment in South Africa continues to increase at an alarming rate. Without drastic interventions, this socio-economic problem may sadly double in size in the next decade. Work experience programmes, such as internships, are increasingly supported to address youth unemployment, particularly among graduates. However, the effectiveness of the current interventions to the unemployment problem are questionable. This paper draws from the perspectives of 50 participants to explore the determinants of post-internship graduate unemployment. In particular, this paper adopts the lenses of mismatch theory of unemployment to explain why young people are vulnerable in the labour market irrespective of their education and work experience. The examined perspectives revealed that, beyond limited labour market demand, there is also an increasing “work experience-job mismatch” leading to post-internship graduate unemployment. Due to the number of factors, including the skills mismatch problem, the transition from higher education to full-time employment is difficult for many graduates.
 
 Received: 30 November 2021 / Accepted: 11 February 2022 / Published: 5 March 2022

The Cyclical Behavior of Unemployment and Wages under Information Frictions

I propose a new mechanism for sluggish wages based on workers’ noisy information about the state of the economy. Wages do not respond immediately to a positive aggregate shock because workers do not (yet) have enough information to demand higher wages. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment, namely, that wages are flexible for new hires and the flow opportunity cost of employment (FOCE) is pro-cyclicality. The model generates volatility in the labor market as well as wage and FOCE elasticities with respect to productivity, consistent with the data. (JEL E24, E32, J24, J31, J63)

How Pigou Solved a Fundamental Theoretical Problem

In this paper, the author critically analysed a unique passage of Pigou's 1933 “The Theory of Unemployment”. Here he is faced with a fundamental theoretical problem in the definition of the national dividend or national income, which has far-reaching consequences on the comprehension of the circulation of money. Pigou is one of the few economists who have noticed this problem and discussed it in the history of economics. The problem can be stated as follows: the part of the value of output that makes up for depreciation; is or is not up for division? Does or does not it become income (that is, wages and profits) in the aggregate? The passage analysed in this paper is exceptional in the history of economics. It is so, first, because it faces the problem. Secondly, but no less important, because Pigou, despite his hesitations, holds the nowadays minoritarian position that the value of the part of the output that makes up for depreciation does not become income for any economic factor. This view implies that this part of the output is not up for division and, therefore, is not a part of aggregate income.

The Structure of OECD Unemployment

In this paper, I apply a set of unit root tests on 31 OECD countries in order to uncover evidence on the best way to model their unemployment rates. There are three primary classes of theories into how the unemployment rate evolves (natural rate theories, hysteresis theories, and structural theories) and they each have very distinct statistical properties related to unemployment persistence. In this paper, I use a set of Markov-Switching Augmented Dickey Fuller tests to find evidence that 20 of the 31 countries could be better modeled by structuralist theories of unemployment than by hysteresis theories or natural rate of unemployment theories. These results provide comparable evidence supporting structural theories of unemployment to previous papers that have used different sets of unit root testing techniques.

Unemployment and Job Change Affect Future Time Perspective

This paper examines the effects of workers becoming unemployed, unemployment duration, and job change as antecedents on their future time perspective (FTP). Drawing on socioemotional selectivity theory, unemployment theories, and job mobility theory, we hypothesize that becoming unemployed, unemployment duration, and job change to be associated with FTP. We apply propensity score matching to control for potentially confounding covariates and to gain unbiased estimates of treatment effects in a quasi-experimental study comprising 1.261 participants of the German Socioeconomic Panel (SOEP) providing longitudinal data from ten survey waves between 2007 and 2017. The results provide support for effects of unemployment experience and job change on future time perspective.

The Holistic Approach : Institutions, Investment and Finance, and the Unemployment in the Financial Instability Hypothesis

The framework of Financial Instability Hypothesis consist of a holistic approach to the changes within the capitalist economy of the United States and the evolution of the financial structure of the economy. Hyman Minsky always emphasized the importance of finance in the capitalist system and described the finance as a constantly-evolving mechanism that creates inherent stability for the economy. Minsky also proposed policy solutions to mitigate the instability caused by the financial innovation and evolution. He considered the institutions within the capitalist system as the most fundamental elements in regards to providing stability to the innately unstable system. However, what is the source of the inherent instability in the capitalist market economy? What are the roles and responsibilities of the institutions in a market economy? What is the relationship between the evolutionary process of the finance and the evolutionary process of institutions in a market economy? This paper will attempt to address these research questions by analyzing and evaluating the Financial Instability Hypothesis in regards to the instability and the institutions. This paper will also address the policy solutions proposed by Minsky in regards to the restructuring and the reform of the public and private institutions within the system. In light of Minsky’s proposals, the goal of this paper is to argue that the Financial Instability Hypothesis is a holistic approach, because it emphasizes the role of and changes in the institutions of the system together with the theory of investment, finance and unemployment along with the analysis of the capitalist economy of the United States. The reformation and the restructuring of the institutions need to take into the role of and modifications in institutions and the theory of investment, finance and the unemployment account for the purpose of the attainment and the maintenance of full employment so as to mitigate the instability of the system. The issue of economic instability is significant to address, because the concepts of investment, finance and unemployment could not be separated from capitalism and Minsky’s proposals of mitigating the innate instability of the capitalist system rest on the idea of reforming the public and private financial institutions and sector and fighting the poverty and unemployment.

‘The Provocative Joan Robinson’ Was Completely Ignorant of Keynes ’S Chapter 21 Is-Lm Model on Pp. 298–299 of the General Theory Even Though She Supposedly Read the Final 1935 Draft of the General Theory: The Exchanges of September to November, 1936 Between Keynes and Robinson Show Her Complete Ignorance

‘The Provocative Joan Robinson’ Was Completely Ignorant of Keynes ’S Chapter 21 Is-Lm Model on Pp. 298–299 of the General Theory Even Though She Supposedly Read the Final 1935 Draft of the General Theory: The Exchanges of September to November, 1936 Between Keynes and Robinson Show Her Complete Ignorance

Unemployed at Midlife: Coping Strategies that Safeguard Well-Being

There is extensive research on the theory of unemployment which posits that job loss and longer-term unemployment have a profound and detrimental effect on well-being. The impacts are severe, and the stakes are higher, for older adults who experience longer durations of unemployment and have less time to recover from financial losses. Despite widespread research, less is known about the multi-faceted phenomenon of coping with long-term job loss at midlife. This study identifies new aspects of complementary coping strategies used by the midlife, long-term unemployed to safeguard their well-being. Qualitative data were collected from a sample of long-term unemployed age 47–59 from the Workforce Investment Act dislocated worker program (N = 16) who reported positive well-being on the General Health Questionnaire (GHQ-12). Structured interview questions generated detailed data on coping strategies. Data were analyzed using MAXQDA10 software. Key coping strategies associated with positive well-being included productive use of time on meaningful activities, conserving financial resources, social supports, and cognitive maneuvers. These findings suggest that employing certain behavioral coping strategies together safeguards subjective well-being during long-term unemployment and enables midlife individuals to remain active in their job search.