Replacement ratio
What Replacement ratio means in Economics A-Level, as defined for AQA.
Definitions of Replacement ratio
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Replacement ratio in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The ratio of unemployment benefits to average earnings, which influences the duration of job searches and the natural rate.
Unemployment benefits relative to wages, which when high can make working financially unappealing.
Topics that use Replacement ratio
- Employment and unemployment (AQA A-Level)
Related terms
- Causes of unemployment
- Claimant Count
- Cyclical unemployment
- Frictional unemployment
- Labour Force Survey
- Labour market rigidities
- Labour mobility
- Living standards
Using Replacement ratio in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge