Economics 313 - Labor Economics Definitions - Supply & Demand - Applications

Cyclical Unemployment - unemployment resulting from recession.  Sometimes called "demand deficient" unemployment

Discrimination - making labor market decisions based on irrelevant criteria (i.e. those unrelated to productivity)

Frictional Unemployment - unemployment resulting from normal healthy job search and job changing activities

Functional Distribution of Income - how income is divided among the different factors of production (i.e. inputs)

Gini Ratio - a measure, given a Lorenz Curve, of how equal or unequal the personal distribution of income is

Glass Ceiling - the tendency to hire certain groups, especially women, but to confine them to the lower level jobs in the organization

Hidden Unemployment - people not working or not working to their desired potential who are not counted as unemployed

Income - purchasing power received over a given period of time

"In Kind" benefits - benefits that come not as cash but as actual goods and services

Lorenz Curve - a way of graphing the personal distribution of income

Natural Rate of Unemployment - a concept that claims that unemployment cannot be reduced by demand policy below the level set by the structure and institutions of the economy.  The attempt to reduce unemployment below this level by demand policy will produce inflation

Personal Distribution of Income - how income is divided among all income recipients, regardless of how they received it

Risk Aversion - the tendency of people to reject "fair games" and to opt instead for safety

Says Law - supply creates its own demand

Seasonal Unemployment - unemployment resulting from predictable changes in demand for goods or services over the course of each year

Structural Unemployment - unemployment resulting from mismatches between the jobs available and the people looking for jobs

Wealth - purchasing power held at a given point in time