Questions

Explain a labor market in which discrimination is likely to take place? Explain a labor market in which discrimination is likely to be punished?

Why did white and non-white unemployment differentials increase in the 1930s?

Suppose that Congress passes legislation making it more difficult for firms to fire workers. (An example is a law requiring severance pay for fired workers.) If this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think that it is plausible that the legislation would not affect the rate of job finding? Why or why not? Would this law reward discrimination? If so, how?

Why did the unemployment rate in the US rise in the 1970s and 80s, and then fall again in the 90s and 00s? (Give four explanations.)

Explain the relatively higher levels of unemployment in Europe.

What three factors does the Solow growth model focus on to explain economic growth across countries and across time?