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Chapter 7: Q.69 (page 457)

In the language of government statistics, you are 鈥渋n the labor force鈥� if you are available for work and either working or actively seeking work. The unemployment rate is the proportion of the labor force (not of the entire population) who are unemployed. Here are data from the Current Population Survey for the civilian population aged 25years and over in a recent year. The table entries are counted by thousands of people.

Unemployment (1.1) Find the unemployment rate for people with each level of education. How does the unemployment rate change with education?

Short Answer

Expert verified

From the given information, the required unemployment rates for each level are0.0852,0.0523,0.0425and0.0272

Step by step solution

01

Given Information

It is given in the question that,

02

Explanation

To find the unemployment rate for each level, divide the difference between 'in the labor force' and 'employed' by the 'in the labor force' from the data.

The unemployment rate for the people who didn't finish high school

=12470鈭�1140812470=106212470=0.0852

The unemployment rate for people who did high school but not college

=37834-3585737834=197737834=0.0523

The unemployment rate for people who have less than a bachelor's degree

=34439-3297734439=146234439=0.0425

03

Explanation

The unemployment rate of people who are college graduates

=40390-3929340390=109740390=0.0272

It is seen that if the highest education is higher, then the unemployment rate becomes lower.

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