Question

Describe the relationship between the size of the employment rent and (i) the expected duration of unemployment (ii) the size of the unemployment benefit per hour and (iii) the size of the psychological cost of unemployment per hour.

Answer 1

Employment rent is an economic term which uses in the workers or employees for measuring and comparing the net value before and after a getting a new job. Which is a better to tool to assess the benefits of the employment and the impact on jobless situation.

Expected duration of unemployment which focus to the actual or expected duration to an individualised person situation lies on the jobless if he or she is qualified or not.

The size of the employment rate and expected duration of unemployment is inverse relationship.

The size of unemployment benefit per hour calculated with use of employment rent divided with expected duration of unemployment.

The size of psychological cost of unemployment per hour is included the component that is physchological factor cost that an employee face during an unemployment period.