Unemployment

Paper Summary:

This paper reviews the idea of unemployment being a constructive aspect of economic life. According to the paper, long term, unemployment is undoubtedly considered to be a negative phenomenon, with great costs for both the directly affected persons and the economy and society as a whole. However, the paper goes on to say that short and medium term unemployment is considered to have certain economic advantages.

From the Paper:

"Unemployment also encourages certain people to start their own business. Most of these people are former employees previously trapped in dead-end jobs with no future, that after being fired from their jobs found the courage and the motivation so start a business of their own. This way, many little companies are coming along quite nicely. These small companies create labor demand that is satisfied by unemployed workers, therefore diminishing the unemployment rate on a medium term."

Sample of Sources Used:

• Labor Force Statistics from the Current Population Survey (2006). U.S. Department of Labor. Bureau of Labor Statistics. Retrieved January 11, 2007 from http://www.bls.gov/cps/home.htm.
• U.S.: Low Unemployment Raises an Old Inflation Debate (2006). Business Week online. Retrieved January 12, 2007 from http://www.businessweek.com/magazine/content/06_08/b3972038.htm.
• Rebitzer, James B. Unemployment, Labor Relations, and Unit Labor Costs (1988). The American Economic Review. Vol. 78. No. 2. Retrieved January 11, 2007 from http://links.jstor.org/sici?sici=0002-8282%28198805%2978%3A2%3C389%3AULRAUL%3E2.0.CO%3B2-U&size=LARGE.

More papers on Unemployment:

• Research Paper # 145083 : "Effects of Unemployment on Kenya's Economy"
• Essay # 32889 : " Unemployment Insurance"
• Comparison Essay # 89014 : "Unemployment and Poverty"
• Research Paper # 32923 : "Solutions to High Unemployment"

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