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[business_cycle] update made to the lecture #641

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[business_cycle] update made to the lecture #641

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3 changes: 1 addition & 2 deletions lectures/business_cycle.md
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Expand Up @@ -591,8 +591,7 @@ plot_comparison(unempl_rate, countries,
plt.show()
```

We see that France, with its strong labor unions, typically experiences
relatively slow labor market recoveries after negative shocks.
We see that France, with its strong labor unions, typically experiences slower labor market recoveries after negative shocks because union influence often leads to stringent employment protection laws, high firing costs, and rigid wage structures. While these measures protect existing workers, they reduce firms’ flexibility to adjust labor costs and hiring in response to changing economic conditions, causing lower labour market adaptability during recoveries.
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Suggested change
We see that France, with its strong labor unions, typically experiences slower labor market recoveries after negative shocks because union influence often leads to stringent employment protection laws, high firing costs, and rigid wage structures. While these measures protect existing workers, they reduce firms’ flexibility to adjust labor costs and hiring in response to changing economic conditions, causing lower labour market adaptability during recoveries.
We see that France, with its strong labor unions, typically experiences slower labor market recoveries after negative shocks.
It is often suggested that a high degree of labor union influence can lead to stringent employment protection laws, higher firing costs, and more rigid wage structures.
While these measures protect existing workers, they can reduce firms’ flexibility to adjust labor costs and hiring in response to changing economic conditions, causing lower labour market adaptability during recoveries.

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@bishmaybarik I have made the comment less conclusive. There is active debate on the tradeoffs here so I think this language is a bit more neutral. What do you think?

I have also used single sentence paragraphs (as per style guide).

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Hi @mmcky ,

Thanks for making these changes. There look great to me. And yes, this language is more neutral and explains things clearly. Thanks a lot!


We also notice that Japan has a history of very low and stable unemployment rates.

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