Choose one country, other than the UK, and compare alternative economic theories and models evaluating which one better describes:

1. long-term unemployment (30% of marks); a. Is this a disequilibrium unemployment? (6%) b. Is this a demand deficient or cyclical unemployment? (6%) c. Is the country seeming to have a ‘natural’ rate of unemployment? (6%) d. Is the Marxian analysis of the reserved army relevant to the country’s unemployment? (6%) e. Which of the above approach is better describing the country’s unemployment and which policy should be implemented? (6%) 2. wage inequality (20% of marks); a. What is the labor-capital indicator of income inequality of the country?

b. Is wage inequality due to supply (Immigration, Education) or demand shifts (International trade, Skilled-biased technological change, Changes in labor market institutions)? (5%)

c. Who is benefited more with the existence of wage inequality? (5%) d. What is the role of unions in wage inequality? (5%) 3. racial discrimination (20% of marks); a. What is the racial inequality level in the country you study? (5%) b. To what degree is the racial inequality of the country explained by the human capital theory? (5%) c. To what degree is the racial inequality of the country explained by the segmented labor market theory? (5%) d. To what degree is the racial inequality of the country explained by the inequality theories? (5%) 4. Inward and outward migration (30% of marks). a. What causes immigration in general? (7.5%)

b. What is the effect on inward immigration on general wage level, on natives and immigrants in particular? (7.5%)

c. How is immigration explained by the Marxian approach? (7.5%)

d. What are the effects of unionism on immigration? (7.5%)

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