Lily is an ore miner. She worked in Central City, Colorado until the mine closed in...
Lily is an ore miner. She worked in Central City, Colorado until the mine closed in 2014 The mine is not projected to reopen. She has been looking for another job but she is not willing to move out of Central City.
Is she "unemployed"? If she IS, tell what type of unemployment is she experiencing. If she is isn't unemployed, explain why.
Homework Answers
The case of Lily represents frictional unemployment. Frictional unemployment is unemployment that is caused by the time it takes for a worker to search for a job. It is caused due to differences in the preferences of the workers, geographic mobility of the workers, flow of information about a job opening etc.
In the present case, the frictional unemployment being experienced by Lily is due to the fact that she is not willing to move out of Central City.
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