Les sources de chômage structurel

Les SES en vidéos

12 May 202214:54

Summary

TLDRThe 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.

Outlines

00:00

📈 Economic Institutions and Structural Unemployment

This paragraph discusses the impact of economic institutions on structural unemployment, focusing on the minimum wage and employment protection rules. It defines institutions as the set of formal and informal rules that facilitate and regulate the meeting of supply and demand in the labor market. The paragraph distinguishes between institutions themselves, such as minimum wage and employment protection rules, and organizations that create and maintain these institutions, like unions, the state, professional groups, and businesses. It also explores the neoclassical model's view on how a minimum wage above the equilibrium wage can lead to structural unemployment, contrasting it with the Keynesian perspective that emphasizes the minimum wage's role in supporting household demand, production, and employment.

05:01

🤝 Job Matching and Its Challenges

The second paragraph delves into the concept of job matching, which involves the compatibility between the labor force and job offers in terms of professional sector, qualification, and location. It highlights the challenges that can arise from mismatches in qualifications and geographical disparities, which contribute to persistent unemployment despite job vacancies. The paragraph also touches on frictional unemployment, which is caused by the time and effort required for job seekers to find suitable employment, and how this process involves a trade-off between the costs of continued job search and the potential benefits of finding a better job. Additionally, it addresses the role of information asymmetry in the labor market, which can lead to adverse selection and moral hazard, and how higher wages can serve as a selection mechanism to attract qualified candidates.

10:03

💰 Efficiency Wages and Structural Unemployment

The third paragraph examines the concept of efficiency wages and its relationship with structural unemployment. It explains that efficiency wages, which are higher than the equilibrium wage, can prevent adverse selection and moral hazard by attracting qualified candidates and deterring unqualified ones from applying. The paragraph also discusses how efficiency wages can increase productivity by making employees feel valued, thus encouraging them to work harder. However, it acknowledges that widespread adoption of efficiency wages can lead to a higher average wage in the market, which, according to neoclassical analysis, can result in a supply of labor exceeding the demand and thus cause structural unemployment. The paragraph concludes by noting that while efficiency wages can combat information asymmetries, they also contribute to structural unemployment.

Mindmap

Keywords

💡Structural Unemployment

Structural unemployment refers to a type of unemployment that arises from a mismatch between the skills and qualifications of the workforce and the requirements of available jobs. In the video, it is discussed as a consequence of various factors such as minimum wage laws, job protection rules, and spatial mismatches. An example from the script is the discussion on how a minimum wage set above the equilibrium wage can lead to structural unemployment due to a surplus of labor supply over demand.

💡Minimum Wage

Minimum wage is the lowest wage permitted by law or by a special agreement. The video explores the impact of minimum wage on employment levels and how setting it too high can lead to structural unemployment. The script mentions that traditional neoclassical analysis posits that a minimum wage above the equilibrium wage can result in less labor being demanded by firms, thus creating unemployment.

💡Job Protection Rules

Job protection rules are legal regulations that govern the conditions under which employees can be dismissed from their jobs. The video discusses how these rules can affect structural unemployment by making it more costly for firms to lay off workers, which can lead to more selective hiring and potentially less job creation, especially for less employable individuals. The script illustrates this by explaining that such rules can deter job creation and contribute to structural unemployment.

💡Frictional Unemployment

Frictional unemployment occurs when people are without work during the process of finding a job. The video describes it as a result of the time and effort required for the supply and demand for labor to meet and match effectively. An example from the script is the concept of job search, where individuals weigh the costs of additional job search against the potential gains, which can lead to a certain level of unemployment as they continue to look for better job matches.

💡Mismatch

Mismatch, in the context of the video, refers to the incongruity between the skills and qualifications of workers and the requirements of job vacancies. It is a source of structural unemployment. The script discusses how mismatch can be in terms of qualifications, where workers may have skills that do not align with what employers are looking for, leading to persistent unemployment despite job vacancies.

💡Spatial Mismatch

Spatial mismatch is a situation where the geographical location of available jobs does not correspond with the residences of job seekers. The video explains how this can contribute to unemployment, even when jobs are available but not in the areas where the unemployed live. An example from the script is the case of technicians facing limited job prospects in certain areas while there is a shortage of engineers or agricultural workers in rural areas.

💡Information Asymmetries

Information asymmetries occur when one party in a transaction has more or better information than the other, which can lead to market inefficiencies. In the context of the video, it is discussed how information asymmetries can lead to structural unemployment. For instance, before a job contract is signed, a candidate might provide false information about their qualifications, a situation known as adverse selection. The video also discusses how efficiency wages can be used to counteract this phenomenon.

💡Efficiency Wages

Efficiency wages are wages set above the market equilibrium level with the intention of increasing productivity and reducing shirking by workers. The video explains how efficiency wages can be used to combat information asymmetries and opportunistic behavior by workers. By offering higher wages, firms can attract more qualified workers and motivate them to work harder, which in turn can increase productivity. An example from the script is the discussion on how efficiency wages can reduce turnover and increase job satisfaction, thus reducing structural unemployment.

💡Neoclassical Analysis

Neoclassical analysis is an economic theory that emphasizes the role of supply and demand in determining prices and quantities in a market. The video contrasts this analysis with Keynesian economics in discussing the effects of minimum wage and job protection rules on unemployment. According to the neoclassical view presented in the script, a minimum wage set above the equilibrium level can lead to a surplus of labor supply and thus structural unemployment.

💡Keynesian Economics

Keynesian economics is a theory that focuses on the aggregate demand in the economy and argues that total employment can be increased through increased government spending during economic downturns. The video mentions that, according to Keynesian analysis, a minimum wage can support household demand, thus production and employment. This contrasts with the neoclassical view, as the script points out that the effect of minimum wage on unemployment is ambiguous from a Keynesian perspective.

💡Labor Market

The labor market is the market in which the supply of labor (workers) and the demand for labor (jobs) interact. The video discusses various institutions and rules that influence the functioning of the labor market, such as minimum wage and job protection rules. The script uses the labor market as a backdrop for discussing how different factors can lead to structural unemployment, such as mismatches in skills, spatial disparities, and information asymmetries.

Highlights

The video aims to understand the positive or negative effects of institutions on structural unemployment, including the minimum wage and employment protection rules.

It discusses how mismatch, spatial disparities, and qualification inadequacies, along with information asymmetries, are sources of structural unemployment.

Institutions like the minimum wage, employment protection rules, and unemployment benefits have significant impacts on structural unemployment.

The neoclassical model suggests that a minimum wage above the market equilibrium wage can lead to structural unemployment.

However, the Keynesian analysis argues that the minimum wage supports household demand, production, and employment, with ambiguous effects on unemployment.

Employment protection rules can lead to more selective hiring by firms, reducing job creation and contributing to structural unemployment, especially for the least employable workers.

On the other hand, employment protection rules can prevent excessive cyclical unemployment during crises and encourage firms to invest in employee training.

Mismatch on the labor market, in terms of sector, profession, qualification, and location, can result in high unemployment despite job vacancies.

Frictional unemployment arises from the time and effort needed for the supply and demand for labor to meet and match effectively in a context of imperfect information.

Information asymmetries on the labor market, where one side has more information than the other, can lead to adverse selection and moral hazard problems.

Efficiency wages, above the market equilibrium, can be used to screen job candidates and prevent adverse selection and moral hazard.

If all firms use efficiency wages, the average wage in the market will be higher than the equilibrium wage, leading to a supply of labor exceeding demand and causing structural unemployment.

Efficiency wages can increase productivity by making workers feel valued and motivated, as their compensation is linked to their effort.

The risk of opportunistic behavior is higher with efficiency wages, as the loss from being fired is greater, deterring shirking.

Efficiency wages can reduce employee turnover by making workers feel well-treated and increasing their loyalty to the firm.

However, widespread use of efficiency wages can recreate the neoclassical labor market analysis, with structural unemployment resulting from an overall wage level that is too high.

While efficiency wages help address information asymmetries, they can also be a source of structural unemployment due to the resulting wage rigidity.