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[نور 99]

By Brandon Fuller, Aplia

Although relatively high at 10%, the national rate of unemployment in France masks the astronomical unemployment rate among the young French Muslims of Arab and African descent that live primarily in impoverished suburbs. Some of these unemployed, disaffected youths began rioting on October 27 after two teenagers were electrocuted while purportedly hiding from police in an electricity substation. While tensions about racial discrimination are undoubtedly at the root of the ongoing French riots, this Financial Times editorial piece considers the role that government labor policies play in the ongoing riots.

The authors are of the opinion that labor market policy reforms would reduce unemployment among France's destitute suburbs. The problems that follow emphasize the role that structural labor policies play in the determination of unemployment in France


questions:
The national unemployment rate in France is 10%. Yet, the national average tells us little about the labor market experience among different demographic groups in France. The rioters tend to be young French-born Muslims of Arab or African descent. Employment statistics among French youth and Muslim minorities are telling.

1.1. According to the commentary, the youth unemployment rate in France is:


A. 43%

B. 36%

C. 15%

D. 21%



According to the commentary, the unemployment rate in riot-torn areas of France reach as high as:


A. 30-35%

B. 40-50%

C. 65-75%

D. 13-14%


Most analysts agree that discrimination plays a significant role in keeping young French Muslims at the margins of French society. The commentary claims there is strong anecdotal evidence (evidence based on casual observation) of racial discrimination by employers.

According to the article, France's interior minister, __________, wants to implement positive discrimination policies (affirmative action) to address excessive minority unemployment.


A. Dominique de Villepin

B. Jean-Marie Le Pen

C. Gerard Depardieu

D. Nicolas Sarkozy



The Financial Times editors argue that France's labor market system, while not directly causing the riots, certainly exacerbates problems in the impoverished suburbs. According to the commentary, which of the following aspects of French labor policy marginalize young, less qualified workers?



I. Minimum wages
II. Payroll taxes
III. Workplace safety standards
IV. Firing restrictions
V. Unionization

A. II, III, and V only

B. I, II, and IV only

C. I, II, III, and IV only

D. II and IV only

E. IV only

F. I, II, III, IV, and V

G. I only





By Paul Romer, Stanford University

The accompanying news article describes policies--promises of pensions and health benefits--that some large companies now offer workers who quit voluntarily. Firms that need to cut costs offer these incentives because they don't want the bad publicity and damage to worker morale from involuntary layoffs.

As the news article reports, many workers who want to work full time willingly take these offers, even when the odds of finding a new position seem low. Although the economy appears to be creating very few jobs, these workers are taking the plunge back into the labor market.


But could appearances be deceiving? Read on to discover the important difference between the net number of new jobs created each month and the gross number of jobs created and destroyed each month.

Even during a recession, it is often easier for an unemployed person to find a new job than you might think, which is good news for college students soon to enter the labor market.


question:

According to the accompanying news article, published in January 2004, the economy created how many new jobs in December 2003?

A. 150,000

B. 10,000

C. 1,000,000

D. 1,000



To make quarterly numbers on job flows comparable to the monthly numbers from the household survey, you have to divide the quarterly flows by 3.

If about 8 million people were hired in the last quarter of 2002, about how many people were hired each month?



A. 1,000

B. 3.4 million

C. 4.9 million

D. 2.6 million

E. 1.2 million

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