Tuesday, July 27, 2010

Structural Unemployment

Just to clarify what I wrote earlier, I think most arguments about structural unemployment are bullshit and are just an excuse to do nothing other than gawk at the misery of millions of unemployed people. Residential construction workers have have skills that could easily be employed doing other perfectly useful things. But the one argument I don't think is bullshit is the hysteresis one, that long term unemployment does eventually increase the amount of structural unemployment.