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View Diary: Chart of the Day: Plight of the long-term unemployed (30 comments)

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  •  the "margin" of labor as a norm in the "market".. (2+ / 0-)
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    Meteor Blades, Creosote

    ..that should be a Dem action goal. Attack the GOP for accepting that there has to be a "margin" or portion of unemployed workers at all as part of the very concept of what defines the "market"

    This question: Are the Long-Term Unemployed on the Margins of the Labor Market?
    ..I'm trying to take this on.

    This paper (pdf) explores the plausibility of a unified explanation for the recent shifts in the price and real wage Phillips Curves and Beveridge Curve in the U.S.: namely, that the long-term unemployed, whose share of overall unemployment rose to an unprecedented level after the Great Recession, are on the margins of the labor force and therefore exert very little pressure on the job market and economy.

    The hypothesis we seek to test is that the longer workers are unemployed the less they become tied to the job market, either because, on the supply side, they grow discouraged and search for a job less intensively (e.g., Krueger and Mueller, 2011) or because, on the demand side, employers discriminate against the long-term unemployed, based on the (rational or irrational) expectation that there is a productivity-related reason that accounts for their long jobless spell

    So this:
    To us, the most important policy challenges involve designing effective interventions to prevent the long-term unemployed from receding into the margins of the labor market or withdrawing from the labor force altogether, and supporting those who have left the labor force to engage in productive activities.

     - emphasis added

    And this blows a fat hole in another GOP think tank economic maxim:
    The low rate of long-term unemployed workers who withdraw from the labor force and report a disability as their reason for not wanting a job suggests that the Disability Insurance (DI) program plays, at most, a minor role in incentivizing the long-term unemployed to withdraw from the labor force, or in supporting them once they do withdraw from the labor force. This observation is also consistent with Mueller, Rothstein and von Wachter’s (2013) conclusion that Unemployment Insurance exhaustions and DI take up are unrelated.
    ..not only proves the "conservative movement" republican party as wrong. It shows that the GOP is broadcasting this myth to a purpose.

    They want a loose labor market (an "excess labor pool" as an asset)  where labor costs are small. Iow's workers systematically get cut out of the fruits of their labor and fair share of the economy.

    So we intervene:
    We can decide on new ways to change and redefine that market. GOP is wrong there is no such thing as this "invisible hand" that no one controls and that the "market" is something that naturally is the way it exists today.

    In this country, right now there may not be enough jobs as defined or rather as the existing market is set up, but there is more work than all of the people on earth could  ever get done at any given point in time.

    That is the truth. A permanent WPA program would use that fact to establish as a goal;  a negative unemployment rate.

    No margin of unemployment ever. Redefine what economics means. Change the rules and laws to bring the fact that there is more work than there are people into reality.

    It is only today's economic policy, refusal to enact a permanent public works program, that has made unemployment a "reality" of the economy.

    A reality that is unreal - based on how much work there really exists to do

    And people deserve time for enjoying their lives beyond earning a living. So taking the fact that there is more work than workers and not the other way around, leisure time will become as natural a part of life as has the un-natural market system that has created this excess labor force to begin with.

     - imo

    Thx MB

    P.S.- I'm way late but am hot listing these Chart of the Day Dairies for ease of future reference/access, and to make these thoughts into a Diary when I can say it in a smart way.

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