Answer to Question #191433 in Macroeconomics for Kebalepile

Question

Analyse the differences in unemployment rates by race and gender

Answer 1

The instability of changes is increased by shocks to the unemployment rate. Males are more affected than females, and whites are more affected than blacks. Unemployment rates are higher for blacks than for whites during economic downturns, and male unemployment rates are higher than female unemployment rates. The rise in the unemployment rate of blacks in response to a change in the aggregate national unemployment rate is greater than the change in the unemployment rate of whites in response to a change in the aggregate national unemployment rate for both males and females. As a result, monetary policies aimed at lowering the overall unemployment rate may cause job volatility in one demographic group to be greater than in another.