Movements of The Beveridge-curve
The Beveridge Curve can move for the following reasons:
- The matching process will determine how efficiently workers find new jobs. Improvements in the matching system would shift the curve towards the origin, because an efficient matching process will find jobs faster- filling vacancies and employing the unemployed. Improvements can be the introduction of agencies (‘job centres’), lower rates of unionisation, and increasing the mobility of labour.
- Labour force participation rate; as the number looking for jobs increases relative to total population, the unemployment rate increases, shifting the curve outwards from the origin. Labour force participation can increase due to changes in education, gender roles, population age and immigration.
- Long-term unemployment will push the curve outward from the origin. This could be caused by; deterioration of human capital or a negative perception of the unemployed by the potential employers.
- Frictional unemployment; a decrease in frictions would reduce the number of firms searching for employees and the number of unemployed searching for jobs. This would shift the curve towards the origin. Frictional unemployment is due to job losses, resignations and job creation.
Read more about this topic: Beveridge Curve
Famous quotes containing the words movements of and/or movements:
“Just as language has no longer anything in common with the thing it names, so the movements of most of the people who live in cities have lost their connexion with the earth; they hang, as it were, in the air, hover in all directions, and find no place where they can settle.”
—Rainer Maria Rilke (1875–1926)
“Just as language has no longer anything in common with the thing it names, so the movements of most of the people who live in cities have lost their connexion with the earth; they hang, as it were, in the air, hover in all directions, and find no place where they can settle.”
—Rainer Maria Rilke (1875–1926)