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[8] Suppose that we would like to apply the Markov model of unemployment we stud- ied in section (3.1) to the female labor market in the U.S. at a monthly frequency. a) Suppose that the average duration of employment for females is six years and it takes 5 months to find a job on average for an unemployed woman. What is the long run unemployment rate for this segment of the population.

[8] Suppose that we would like to apply the Markov model of unemployment we stud- ied in section (3.1) to the female labor market in the U.S. at a monthly frequency. a) Suppose that the average duration of employment for females is six years and it takes 5 months to find a job on average for an unemployed woman. What is the long run unemployment rate for this segment of the population.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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[8] Suppose that we would like to apply the Markov model of unemployment we stud- ied in section (3.1) to the female labor market in the U.S. at a monthly frequency. a) Suppose that the average duration of employment for females is six years and it takes 5 months to find a job on average for an unemployed woman. What is the long run unemployment rate for this segment of the population. b) Suppose that the model in the previous part describes the female labor mar- ket accurately. According to this model how many women will become un- employed between two consecutive months. (Assume the total female labor force employed is 75 million.) c) When the economy is stationary, how many women are unemployed in this economy. (Assume the total female labor force employed is 75 million.) d) Now suppose that a is zero and A is 0.10. For a woman who is currently employed, what is the long run unemployment rate? Do we have a stationary distribution in this case?
Transcribed Image Text:[8] Suppose that we would like to apply the Markov model of unemployment we stud- ied in section (3.1) to the female labor market in the U.S. at a monthly frequency. a) Suppose that the average duration of employment for females is six years and it takes 5 months to find a job on average for an unemployed woman. What is the long run unemployment rate for this segment of the population. b) Suppose that the model in the previous part describes the female labor mar- ket accurately. According to this model how many women will become un- employed between two consecutive months. (Assume the total female labor force employed is 75 million.) c) When the economy is stationary, how many women are unemployed in this economy. (Assume the total female labor force employed is 75 million.) d) Now suppose that a is zero and A is 0.10. For a woman who is currently employed, what is the long run unemployment rate? Do we have a stationary distribution in this case?
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