ECON211 Lecture 7: Econ lecture 7
16 Dec 2016
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Structural: those who are unemployed due to a mismatching between available workers and their characteristics and job vacancies and their requirements. Mismatching could be based on skills, general education, geographic location, and personal characteristics. New technology that introduced new products and renders old ones obsolete or new technology that changes the processes through which products are made renders certain occupations or entire industries redundant. These changing patterns of consumer demand are particularly due to trade liberalisation- also removal of tariffs and cause changing industrial and occupational structure. Such a changing industrial structure often provides a basis for locational or geographic mismatching, where, historically, a now contracting industry had developed in a particular region. Statistical discrimination: occurs when rms recruit/ select employees according to group characteristics rather than individual characteristics or individual suitability for the job (such as general education, age, gender, or ethnic background) as factors providing for mismatch.
