This phenomenon is efficient in directed search models but may be inefficient in random search.
This phenomenon is efficient in directed search models but may be inefficient in random search. According to the Shapiro-Stiglitz model, efforts to avoid shirking create a market inefficiency that leads to it. The Beveridge curve plots this phenomenon against the vacancy rate. This phenomenon is inversely related to GDP growth by Okun's Law and to inflation by the Phillips Curve. There are "structural" and "frictional" types of this phenomenon, whose U3 measure does not include discouraged workers. For 10 points, name this phenomenon whose rate in the U.S. has fallen from 10 percent during the Great Recession to 4.4 percent as of late 2017.
This phenomenon is efficient in directed search models but may be inefficient in random search.
unemployment