EcoDev Finals

• What is OECD?

  Organization for Economic Co-operation and Development
• Unemployment

  • according to OECD is a person above specified age (usually 15) not being paid in employment or self employment but currently available for work during the reference period
• Unemployment

  a person who is not employed and and is seeking employment
• Types of Unemployment

  • Frictional
  • Structural
  • Cyclical
• Frictional Unemployment

  • known as search unemployment
  • a type of unemployment that arises when workers are searching for new jobs or aretransitioning from one job to another
• Structural Unemployment

  • structural unemployment can still arise if the kinds of person looking for job do not “fit” the job availabe
  • is a long lasting unemployment that comes about due to the shifts in an economy
  • This type of unemployment happens because though jobs are available, there's a mismatch between what companies need and what available workers offer
• Cyclical Unemployment

  • arises due to ups and downs of business cycle
  • the demand for goods and services in an economy decreases, forcing companies to lay off workers in an effort to cut costs
  • When the economy is in a recession, there is a fall in demand for labour
• Urbanization

  • the process through which cities grow and higher percentages of the population comes to live in the city
  • it is also the process by which large numbers of people become permanently concentrated in relatively small areas, forming cities.
• Urbanization Rates

  • urbanization rates rise as long as the population in the urban areas exceeds the population growth in the rural areas
• The most urbanized country is Japan
• The least urbanized country is Burundi
• Developing countries of today are more urbanized than develop countries (Todaro and Smith, 2015)
• How urbanization rates rise?

  when the population in the urban areas exceeds the population growth in the rural areas
• Urban bias

  • The notion that most governments in developing countries favor the urban sector in their development policies, thereby creating a widening gap between the urban and rural economies
• Rural-urban migration

  • The movement of people from rural villages, towns, and farms to urban centers (cities) in search of jobs
• Agglomeration economies

  • Cost advantages to producers and consumers from location in cities and towns, which take the forms of urbanization economies and localization economies
  • Agglomeration economies are the benefits obtained from production agents and consumers being close to each other at certain locations
  • Agglomeration economies occur when a number of firms producing similar or complementary goods locate near one another
• 2 forms of Agglomeration economies

  • Urbanization Economies
  • Localization Economies