Monday, July 12, 2010

Unemployment Issues

Economists argue about the extent to which the unemployed turn down job offers or fail to seek work until their benefits run out. Here is a Wall Street Journal article which presents both sides of this argument.

People who've had good jobs paying good money don't want to take less-good jobs paying less money. You can see their viewpoint. Why take one or more steps backward on the career ladder? On the other hand, that is what society wants them to do, it is called "labor mobility."

As long as there are benefit checks coming in every week, there may be no need to consider jobs below one's "pay grade." When the benefits run out, the need presents itself, particularly if the unemployed person doesn't have an employed significant other or sympathetic parent.