If we know that on average 50% of unemployed leave unemployment each month, then the average duration of unemployment is:

Name: If we know that on average 50% of unemployed leave unemployment each month, then the average duration of unemployment is:
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The average duration of unemployment can be calculated as the reciprocal of the exit rate from unemployment. If 50% leave unemployment each month, the exit rate is 0.5, and the average duration is 1/0.5 = 2 months.

If We Know That on Average 50% of Unemployed Leave