Les sources de chômage structurel

Summary

The video script discusses the impact of institutions on structural unemployment, focusing on the effects of minimum wage and employment protection rules. It explains that institutions can both positively and negatively affect unemployment levels. The traditional neoclassical model suggests that a minimum wage above the equilibrium level can lead to structural unemployment, as it creates a surplus of labor supply over demand. However, the Keynesian perspective argues that a minimum wage can support household demand, production, and employment. Employment protection rules can deter job creation due to the anticipated high cost of dismissals, contributing to structural unemployment, particularly for the less employable or less qualified individuals. Yet, these rules also prevent excessive cyclical unemployment during crises and encourage companies to invest in employee training. The video also explores matching problems in the labor market, including skill mismatch, geographical mismatch, and information asymmetry, which can lead to frictional unemployment. It further explains how information asymmetry can lead to adverse selection and moral hazard, and how efficiency wages can counter these issues but may also contribute to structural unemployment by raising the average wage above the equilibrium level.

Takeaways

• 🏢 The effects of institutions on structural unemployment can be both positive and negative, influencing factors such as minimum wage and job protection rules.
• 📉 Structural unemployment can result from mismatches in skills, spatial disparities, and qualification inadequacies, as well as information asymmetries and wage deficiencies.
• 📋 Institutions are defined as the set of formal and informal rules that facilitate and regulate the meeting of supply and demand and price setting in the labor market.
• 💰 The concept of a minimum wage can lead to structural unemployment if set above the equilibrium wage, as it may deter companies from hiring due to increased labor costs.
• 🔄 Keynesian analysis suggests that a minimum wage can support household demand, production, and employment, thus having an ambiguous effect on unemployment.
• ⚖️ Job protection rules can lead to selective hiring and a reluctance to create jobs, potentially contributing to structural unemployment, especially for the less employable or less qualified individuals.
• 🛠️ Job protection rules also prevent excessive cyclical unemployment during crises and encourage companies to invest in employee training.
• 🤝 The matching process on the labor market involves compatibility between job seekers and job offers in terms of professional sector, qualification, and location.
• 🌐 Geographical mismatch can occur when the location of residence does not align with job locations, contributing to persistent unemployment despite job vacancies.
• 🔍 Information frictions and imperfections on the labor market can lead to frictional unemployment as job seekers may need to search extensively to find suitable employment.
• ⏳ The concept of 'search unemployment' arises from the time needed for the supply and demand for labor to meet and match effectively, especially in the context of information imperfections.
• 🤝 Addressing information asymmetries through efficiency wages can help combat adverse selection and moral hazard, but may also contribute to structural unemployment if widely practiced.

Q & A

What is the main objective of the video?

The main objective of the video is to understand the positive or negative effects of institutions on structural unemployment, particularly focusing on the minimum wage and employment protection rules, and to recognize the problems of mismatch, spatial disparities, qualification, and information asymmetry as sources of structural unemployment.

What is considered an 'institution' in the context of unemployment analysis?

In the context of unemployment analysis, an institution is considered to be the set of formal and informal rules that allow and regulate the meeting of supply and demand as well as the price setting on the labor market.

How does the neoclassical model of labor market equilibrium view the effect of a minimum wage?

The neoclassical model suggests that a minimum wage set above the equilibrium wage can lead to structural unemployment. This is because at the higher minimum wage level, the quantity of labor demanded by firms is less than the quantity of labor supplied by workers.

What is the Keynesian perspective on the effect of a minimum wage on unemployment?

The Keynesian perspective posits that a minimum wage can support household demand, thereby influencing production and employment positively. Its effect on unemployment is thus ambiguous, as it may raise wages but also stimulate economic activity.

How do employment protection rules affect structural unemployment?

Employment protection rules can lead to structural unemployment by increasing the anticipated cost of dismissal, making firms more selective in hiring and thus potentially reducing job creation, especially for less employable or less qualified individuals.

What are the problems of matching on the labor market?

The problems of matching on the labor market refer to the compatibility between the world of work and job offers in terms of professional sector, qualification, location, etc. Mismatches can occur when the qualifications offered by candidates do not match the qualifications sought by companies.

What is frictional unemployment and how does it arise?

Frictional unemployment arises from the time necessary for the supply and demand for labor to meet and match correctly. It is caused by job search frictions and the imperfect information on the labor market, leading to a period where workers are unemployed while searching for a job.

What is meant by information asymmetry in the labor market?

Information asymmetry in the labor market refers to a situation where one side of the market (either the supply or demand) has information that the other side does not have, which is opposite to the concept of transparent information.

How does the 'efficiency wage' concept help to combat moral hazard in the workplace?

The efficiency wage, which is higher than the market equilibrium wage, can motivate employees to be more productive as they feel well-treated by their employer. It also increases the risk associated with opportunistic behavior, as the loss of a high wage job would be significant for the employee.

How does the practice of efficiency wages by all companies impact the labor market?

If all companies practice efficiency wages, the average wage in the market will be higher than the equilibrium wage, potentially leading to a situation where the supply of labor exceeds demand, thus creating a certain level of structural unemployment.

What is the role of trade unions, the state, and professional groups in maintaining institutions?

Trade unions, the state, and professional groups play a crucial role in creating, maintaining, and funding institutions. They help in establishing rules such as minimum wage, employment protection, and unemployment benefits, which in turn influence the labor market dynamics.

How does the concept of 'moral hazard' apply to the labor market?

Moral hazard in the labor market refers to the behavior of employees who may not put in the expected effort once they are hired, taking advantage of the wage without bearing the cost of work. An efficiency wage can help mitigate this by making the risk of being caught and losing the high wage significant.