Summary of Sesión 2 ECO250

00:00:00 - 00:30:00

This video discusses unemployment, and how it can be caused by a number of factors, including economic cycles, recessions, and a lack of available jobs. It also discusses how structural unemployment is the most difficult to manage, and how it can be caused by an economy that is not well-structured. Finally, the video discusses how the minimum wage affects businesses, employees, and the economy as a whole.

• 00:00:00 In this second ECO250 video session, we will discuss unemployment. We'll talk about what it is, what we talked about in our first session, and basic concepts of economics. We'll focus on how to manage these concepts throughout the semester. In this video, we'll discuss what unemployment is, and focus on people who are over the age of 16 but are not currently working and are available for work. This definition is specific to each country, and can change based on policies of each country. We'll also discuss the concept of age eligibility for unemployment, which is when a person has reached a specific age that allows them to be considered unemployed. This age can change depending on the country, and is usually determined at a point when a person is no longer able to work.
• 00:05:00 In this video, a patient is hospitalized and there are various situations that can place someone with certain incapability for work at some point in order to be able to work at a specific time. There is no need for this person to be in a situation of that nature in order to be unemployed, and they must be actively looking for new work in order to be considered unemployed. Another term for this is "employment inactive." In Bolivia, when someone is considered unemployed, it means that they are not employed or looking for work. This is broken down into economically inactive and actively looking for work. From the population, there is a distinction between those who are employed and those who are economically inactive. The unemployment rate is measured by the active population unemployed divided by the active population. This is done by dividing the population of unemployed by 100. Now, we will define economically inactive as the number of people unemployed as a percentage of the working population. Now, we will correct this for those of us who are learning Spanish. 16 years is the time period we are referring to when we talk about being unemployed. Individuals who are 16 years or older and are not employed or looking for work are considered economically inactive. Everybody in this group, from the smallest to the largest, has someone
• 00:10:00 The video discusses the population of inactive and active citizens, and the difference between the two groups. The inactive population includes retirees, people who have retired, and students. The active population includes employed people, those who are temporarily unemployed, and those who are self-employed. The video discusses the differences between the two groups, and points out that, for those who are self-employed, it is not unusual for them to be unemployed for certain periods of the year. For those who are employed, it is not surprising to be unemployed for certain periods of the year.
• 00:15:00 The video discusses the different types of unemployment, which can be seasonal, cyclical, structural, or involuntary. It then goes on to discuss the phenomenon of unemployment in the middle of a recession, when people are still looking for a new job but have stopped receiving offers. This is called a "frictional" unemployment. Next, the video discusses the phenomenon of "unemployment due to a lack of work," which is caused by technological change, globalization, or other factors. This type of unemployment lasts for a very short period of time, and typically goes away when the economy recovers. Finally, the video discusses the phenomenon of "unemployment due to a lack of jobs," which is caused by a recession or a lack of economic growth. This type of unemployment can last for a longer period of time, and can be more difficult to overcome.
• 00:20:00 The video discusses the issue of unemployment, which is often due to fluctuations in the demand for work. It discusses the cyclical nature of unemployment, which is caused by reductions in the demand for labor during certain economic cycles. The video also discusses the issue of joblessness during economic recessions, which is often due to decreased wages and a lack of available jobs.
• 00:25:00 The video discusses how structural unemployment is the most difficult to manage, and the most difficult to change. Structural unemployment is caused by an economy that is not structured well, and is often due to a country's economy being based on a certain sector or activity. This is the most difficult thing to change, and will require changes to the economy's structure. This is why structural unemployment is often called "the most difficult to manage." The video goes on to discuss how, in some cases, unemployment is due to a lack of available jobs due to the population being overworked in other areas. For example, in tourist-heavy areas like Samaipata, Bolivia, there is a lot of overwork due to high demand for jobs. As a result, workers are continuously moving between jobs and sectors, which is called a "flow of workers." This creates a natural unemployment, which is caused by a lack of workers willing to stay in one job for a long time. The video then talks about how rigid wages and a lack of information are also limiting factors to economic policy and institutional aspects of the economy. These issues can be obstacles to increasing minimum wages, and can hinder the flow of workers between sectors.
• 00:30:00 The video discusses how the minimum wage affects businesses, employees, and the economy as a whole. It also discusses how to create labor unions in Chile.