Chapter 28: Unemployment

[@roye6961]

These videos are simple and coherent, so they are not only for econ students. Anyone can learn from these educational videos. This is how all professors need to teach, entertaining and easy-to-follow. Thank you Dr. Azevedo.

[@K12LearningCoach]

Thank you so much for your lecture videos! They make a great supplement to any macroecon online class that does not provide lectures.

[@mishaavalkova7462]

You are great!! Cannot really thank you enough for the knowledge and simple explanation!

[@DrAzevedoEcon]

Happy to be able to help!

[@aoTrangd-ll9qk]

Tks u so so much for ur explanation in this vid. It's tremendouly easy for me to comprehend and get a comprehensive understanding abt Unemployment. Tks a lot once again!

[@lpw4239]

Thank you so much, it's beneficial for my study.

[@DrAzevedoEcon]

I'm happy to be able to help!

[@nalinidhiman8401]

Thank you Dr. Azevedo! :)

[@samuelagyeman5090]

Thank you so much, these are great!!!

[@manfefromelese3979]

Thanks for your educative lecture !

[@kelvinagudey-gg8fz]

Everytime I feel like watching a football video while watching this video I discover something new

[@chauhoang814]

Thank you! Your videos help a lot

[@DrAzevedoEcon]

You're welcome....happy to help.

[@Dilnazdidarovna]

Thank you, Professor!!!

[@DrAzevedoEcon]

You're welcome!

[@DeRobyJ]

I have a question: is the comparison between goods/services and workers generally valid for the supply and demand law? Because the "buyers" have a different objective. The buyer of a good or service wants to convert money into that good or service, while the employer wants to convert money into more money, as workers create good or services to sell. I think the employer will hire as long as the value created by the hire is higher than the cost. I think in general the demand of the produced goods/services should be accounted too between the causes for unemployment. If people on average have less money to spend, they will have way less demand for many products, decreasing demand for workers by employers too. With, for example, a minimum wage, many will have more money to spend, increasing the potential revenue of firms who might suddenly need the surplus workers that according to your explanation are going to be left out because of the min wage. I'm not an economics student so I'm just asking a question, perhaps there's some other video, or book/paper I can read about this connection between demands

[@DrAzevedoEcon]

You are correct that there is a fundamental difference between a consumer's demand for a good or service and a firm's demand for labor. We would describe a firm's demand for labor as a "derived demand" because it is derived from the consumer's demand for the good that the labor is used to produce. We do actually think about this as one of the causes of frictional unemployment. The economy is constantly changing. Some of the change is because of changes in consumer preferences while other changes may come from technological progress. Some jobs vanish while new jobs are created. Keep in mind that a very tiny percentage of workers actually work for the minimum wage, so I'm pretty skeptical that an increase in it will cause many more people to have more money to spend. The problem is that things that happen in one market impact other markets, which impact other markets, etc. This means that the impact of a minimum wage is hard to predict. It certainly may help some people, but it will undoubtedly hurt others.

[@nalinidhiman8401]

wait, can i ask how you'er drawing on the board??? it cant be a transparent board because if you are behind it then we should see everything flipped...??

[@SinoceMlalazi]

😅😅😅😅

[@rook839]

amazing! thank you

[@owaisahmed005]

Sir please make a video on Chapter 25 Production And Growth

[@aykoaykobiyebiye204]

everything made perfect sense until now but the supply curve for the labor market has very low elasticity compared to what we draw in this lecture i think. cuz if there was no minimum wage firms wouldn't pay that much and we would still have close to same amount of ppl working if not more to survive/provide for kids etc. yeah labors can do a strike but if the government does nothing i can just wait out for ppl to die starving and they will start working for lower wages anyway if they wanna live.

[@DrAzevedoEcon]

While it is true that the elasticity of the labor supply curve varies across markets, that doesn't imply that firms are in complete control of the wage. It also doesn't imply that the lower the wage, the more people will work. If all firms had to do was wait until everyone is starving and then willing to work for next to nothing, then we would be seeing this happen in markets where there is no minimum wage, which is a vast majority of markets. Keep in mind that less than 2% of the workforce is paid a minimum wage. Over 98% of the workforce is working for a wage (or salary) that is not determined by a price floor.

[@aykoaykobiyebiye204]

@@DrAzevedoEcon thanks for the reply. in my country like 50% of the labor force works for minimum wage so that got me thinking wrong i think.

[@DrAzevedoEcon]

@@aykoaykobiyebiye204 You aren't necessarily thinking about it wrong. Each labor market will be somewhat unique. In some, the firms may have a great deal of market power (ability to drive wage down), while in others it may be the workers who have market power (ability to drive wage up). The key thing that economists don't like about a price floor (or any type of price control) is that they prevent markets from clearing when they are binding. In other words, they create a persistent surplus or shortage. There are other options that don't have this side effect. For example, if there are workers who are struggling to provide for their families, then direct subsidies to those workers can be a better policy.

[@aykoaykobiyebiye204]

@@DrAzevedoEcon thanks a lot for the explanation

[@Legitjayesh]

Very helpful session to revise the unemployment chapter.

[@yanabudaghyan5974]

Hi I wanted to ask which book you are using for the lectures? In our university we use Gregory Mankiw Principles of Macroeconomics 8th edition

[@waqasahmadmughal5381]

Same

[@nsoumik1711]

Are people who make content on KZbin and get paid considered to be employed?

[@DrAzevedoEcon]

Yes....they would be counted as self-employed.

[@lesteroliva75]

Please the to the folks who want ridiculous minimum wage for unskilled labor 😂

[@tamrinimelda]

Mo ngapa ngapain susah, pengangguran #salamTAMRINgantenk

[@maishasamiha1046]

he looks like coach beard from ted lasso

[@DrAzevedoEcon]

Haha! Is this a good thing or a not so good thing?

[@owaisahmed005]

Sir please make a video on Chapter 25 Production And Growth

[@owaisahmed005]

Sir please make a video on Chapter 25 Production And Growth

[@owaisahmed005]

Sir please make a video on Chapter 25 Production And Growth

[@owaisahmed005]

Sir please make a video on Chapter 25 Production And Growth