Which of the following increases frictional and/or structural unemployment?
i. more young workers entering the labor force
ii. more generous unemployment benefits
iii. a structural slump with some industries dying

Question

Quizplus · Accepted Answer

More young workers entering the labor force can increase frictional unemployment as they search for jobs. More generous unemployment benefits can increase frictional unemployment by reducing the urgency to find a new job. A structural slump with dying industries increases structural unemployment as workers need to retrain for new industries.

Which of the Following Increases Frictional And/or Structural Unemployment