Configuration Unemployment: Measuring Structural Problems in a Contemporary Economy

<h2><a href="http://www.professorhollybell.com/wp-content/uploads/2013/08/ID-10079499.jpg"><img class="alignleft size-medium wp-image-2600" alt="unemployment" src="http://www.professorhollybell.com/wp-content/uploads/2013/08/ID-10079499-300x300.jpg" width="300" height="300" /></a>"The fact that it has not disappeared from the planet, and could potentially return to countries like the U.S. under the right conditions,makes sector analysis as a measure of structural unemployment look more like the cyclical model"</h2> <p>By Holly A. Bell</p> <p>In a recent article, Paul Krugman asked: “Is there any point to economic analysis?”.  The reason for his frustration is that “Beltway conventional wisdom has settled on the proposition that high unemployment is structural, not cyclical, even though there is now a bipartisan consensus among economists that the opposite is true.” Using the narrow definition of structural unemployment, Dr. Krugman is exactly right. When utilizing economic models for structural unemployment, we would expect employment disruptions in specific industries and areas of the country, including high unemployment in the vanishing sectors and shortages of workers in the emerging area of the economy. The

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