Re: Fix unemployment

Robin Hanson (
Thu, 24 Sep 1998 11:02:07 -0700

On 9/3 I listed these causes of unemployment:
>Search ... Minimum wages ... Capital constraints ... Time runs out ...
>Bad luck ... Poverty ...

I just read a short interesting book, "The Labor Market as a Social Institution", by (Nobel winner) Robert Solow, wherein he sketches a number of other possible causes. These include people working harder when jobs are scarce, firm insiders colluding to limit new employees, and loss of social status from accepting a job with lower pay. It seems plausible that there is an awful lot we don't understand about the basic processes here. Hard to do much fixing till you know what's going on.

Robin Hanson RWJF Health Policy Scholar, Sch. of Public Health 510-643-1884 140 Warren Hall, UC Berkeley, CA 94720-7360 FAX: 510-643-8614