which of the following will lead to a decrease in the averag

which of the following will lead to a decrease in the average length of job search?

a. a recession

b. a greater number of women in the labor force

c. an increase in the maximum number of unemployment compensation benefits

d. none of the above.

Solution

a) A recession lead to increased level of unemployment in the economy. Layoffs increase and prices tend to rise. As a result, those searching for job will have a harder time finding themselves a job because of decreased production activities in the economy due to recession. Therefore, the average length of job search will increase because of recession.

b) A greater number of women in labor force will not affect the length of job search. Length of job search is not dependent on either males or females getting employed. Thus, average length of job search will not get affected.

c) An increase in the maximum number of unemployment compensation benefits will increase unemployment and discourage workers from finding a job, as they will find it beneficial to enjoy the increased compensation benefits rather than going out and work and then earn money. Thus, average length of job search will increase because of increased compensatory benefits.