題組內容

We usually observe that the less educated workers tend to hold manual and service occupations. Besides, the unemployment rate for the less educated workers is found to be higher than that for more educated workers. Furthermore, the less educated were found to be hurt the most in terms of job loss during the COVID-19 pandemic.

(e) (5%) Suppose that there is a developed North country and a developing South country. Suppose that prior to the pandemic, the two countries have the same sector specific unemployment rate, but their labor force compositions are different, i.e., \( v^N \neq v^S \). Which country has a higher \( v \), the North or the South? Which country has a higher unemployment rate prior to the pandemic? How the pandemic affects the job separation rates and the job finding rates in the North and the South? Which country has a higher unemployment rate during the pandemic? Briefly explain your answer.