Accounts Quote by Kenneth Arrow
“I don't believe that unemployment is all voluntary, by anticipation of future wage movements or this sort of thing. I know you can modify the models by taking into account the indivisibilities, but I don't really think that people are voluntarily unemployed.”
About This Quote
Source Paper: “Unemployment and the Labor Market” (1970) discussing voluntary vs involuntary unemployment
Unemployment is rarely a free choice; structural factors and indivisibilities limit true voluntariness.
In simple terms: Jobs are often not chosen freely.
Recognize systemic barriers to work.
Themes
Mood
Type
When to use this quote
- welfare design
- job training programs
- minimum wage debates
Key Concepts
Questions to Reflect On
- What policies best reduce involuntary joblessness?
- How do personal circumstances affect labor decisions?
Assumes rational agents ignore personal constraints.