Question

Would you expect the natural rate of unemployment to be roughly the same in different countries?

Short answer

No, we can't expect the natural rate of unemployment to be roughly the same in different countries.

Step-by-step solution

Step 1. Definition

In an economy the workers may come and go and always look for a better job, the period of joblessness in which the workers are looking for a job is called the natural level of unemployment.

Step 2. Explanation

Different countries have different rates of natural unemployment because of the public policies they follow and other reasons.

Take an example like in a country where guaranteed unemployment insurance, welfare benefits, food, medical benefits are given to an unemployed person here the person is less likely to work because the opportunity cost of being unemployed is less. So, in this country, the natural rate of unemployment is more as compared to the country which doesn’t provide these benefits to the unemployed.