Assignment:
For this assignment we will look at the labor market before, during, and after the financial crisis, also known as the Great Recession. You will analyze the 2006-2016 period; these are the years that have the same unemployment rate of 4.7% in both January of 2006 and in December of 2016, with higher unemployment in between due to the crisis.
The purpose of this exercise is to document and explain the unemployment rate. the participation rate, and (average) hours of work during the Great Recession and present them separately as a three-perspective view of the labor market in the context of the financial crisis.
The participation rate and hours correspond to the extensive and intensive margins, respectively. The 'extensive margin' refers to whether or not to work, and the 'intensive margin" refers to how many hours, once one has decided to work (in line with the labor-leisure model of the household).
Get the following series from the SL Louis Federal Reserve Bank FRED database from January 2006 to December 2016:
• Unemployment Rate (UNRATE)
• Labor Force Participation Rate (CIVPART)
• Average Weekly Hours of All Employees. Total Private (AWHAETP ---starts in March of 2006)
Your work has to have:
• Introduction (what is the question that you are addressing, for example, what happened in the Labor Market during the Financial Crisis?)
• Narrative (a description of how you are addressing it) - Conclusion (what do you learn from the exercise and also ties together the two parts above)
Not counting the graphs and/or illustrations. the word-count should be around 500 words. You are free in regard to the design (font, font size. spacing, background color, etc.) The file has to be uploaded to CANVAS in PDF format.
Note: This is not a research paper. Your write-up has to be based only on the class material, so there is no bibliography section.