ECON 102 Lecture Notes - Lecture 19: Market Clearing, Frictional Unemployment, Real Wages
Document Summary
Many developing countries are undertaking economic reform programs which entail the liberalization of certain key sectors, for example, textiles. Such liberalization may contribute to domestic unemployment if domestically produced commodities are, for example, unable to compete with cheaper foreign substitutes. This is because some domestically owned firms may be forced to shut down their operations and consequently lay off may workers. In addition, economic reform programs may have a component of. Civil sector reform which may lead to the retrenchment of many workers in the civil service with consequent rising unemployment. The following are the main types of unemployment: This occurs when a person is willing to work at the ruling wage rate but is not able to secure a job. When a person willing to work but cannot find work and especially if this is visible to others it is called open unemployment.
