Behavioral Basis for the Convexity of the WS and Phillips Curves

An economy experiences a significant economic downturn, causing the general unemployment rate to rise from 4% to 10%. For an individual who is still employed, how does this change in the broader economic environment affect their personal cost of job loss and their ability to negotiate for better pay?

Comparing Worker Bargaining Power in Different Economic Climates

The Link Between Unemployment and Worker Bargaining Power

A government policy that significantly increases the generosity and duration of unemployment insurance benefits would, all else being equal, increase the cost of job loss for an average worker.

Factors Influencing a Worker's Cost of Job Loss

Arrange the following events into the correct causal sequence that occurs when the general level of unemployment in an economy decreases.

Match each economic scenario with its most likely effect on an average worker's cost of job loss and their resulting bargaining position.

When the general level of unemployment in an economy is high, the expected duration of a job search is longer. This increases the net economic and psychological loss an employee would face if fired, which in turn ____ their bargaining position when negotiating for wages and working conditions.

Evaluating Policy Impacts on Worker Bargaining Power

Analyzing a Labor Market Policy

Theoretical Effect of Unemployment Benefits on Unemployment