-
Looking for HSC notes and resources? Check out our Notes & Resources page
Quick Eco Question (1 Viewer)
- Thread starter leshasha
- Start date
- Joined
- Jul 11, 2012
- Messages
- 11,592
- Location
- l'appel du vide
- Gender
- Undisclosed
- HSC
- 2014
- Uni Grad
- 2018
Hysteresis is the process whereby unemployment in the current period results in the persistence of unemployment in future periods as unemployed people can lose their skills, job contacts and motivation to work.
(Ref Dixon, 2013)
(Ref Dixon, 2013)
Study_like_a_nerd
Member
- Joined
- Mar 9, 2014
- Messages
- 101
- Gender
- Female
- HSC
- 2015
In simple terms I think of it like this:
If an individual stops training for a sport, they will lose their skills and thus lose the game. If they continually do not practice, their skills will continue to deteriorate to a point where they are not motivated to play the sport anymore. Similarly, when an individual is unemployed in a current period, it will lead to persistence unemployment and the individual will lose their skills, job contacts and motivation to work.
If an individual stops training for a sport, they will lose their skills and thus lose the game. If they continually do not practice, their skills will continue to deteriorate to a point where they are not motivated to play the sport anymore. Similarly, when an individual is unemployed in a current period, it will lead to persistence unemployment and the individual will lose their skills, job contacts and motivation to work.