What does disguised unemployment mean?

Also known as hidden unemployment, this refers to a situation where labour that is employed in a job is not actually utilised for the production of goods and services. Sometimes disguised unemployment could simply be a form of underemployment wherein the skills of a labour force are not utilised to their full capacity.

What is the example of disguise unemployment?

(i) In rural areas, where agriculture is the main source of income, this kind of unemployment can be seen often. If a piece of land requires only three people to work on it and instead five people are working on it, then the two extra people are said to be in a situation of disguised unemployment.

Who developed the concept of disguised unemployment and why?

Joan Robinson developed the concept of Disguised employment. It is also known as hidden employment.

Who said that it is not that too much labour is being spent in the production process but that too many Labourers are spending it disguised unemployment thus normally takes the form of a smaller number of working hours per head?

Amartya Sen
Amartya Sen, the disguised unemployment occurs due to the fact that a given amount of labour is spent by too many labourers. Consider Fig. 50.1 again.

What are the features of disguised unemployment?

1)The marginal productivity of labor in disguised unemployment is zero. 2) It is usually associated with family employment or self employed labor and not wage labor. 3) It is not possible to identify personally disguisedly unemployed labor.

How can disguised unemployment be removed?

When more people are compelled to do a job which only few can do, then such a situation is termed as disguised unemployment. (v) Technical, vocational training can reduce the unemployment of farmers.

What is the example of educated unemployment?

Educated unemployment- when an educated people do not find jobs it is called educated unemployment. Frictional Unemployment- when there is unemployment due to breakdown of machines, strikes, shortage of raw materials, power failure etc it is frictional unemployment. This type of unemployment is temporary.

Who give the concept of disguised unemployment?

The theory of disguised unemployment was introduced into the theory of underdevelopment by Rosenstein Rodan in his famous article “Problems of Industrialisation in Eastern and Southern Europe”.

What are the three main kinds of unemployment?

Economists often refer to three types of unemployment: “frictional”, “cyclical” and “structural”. Cold-hearted economists are not too worried about the first two, which refer to people moving between jobs and those temporarily laid-off during a downturn.

What are some examples of seasonal unemployment?

Seasonal Unemployment vs Disguised Unemployment

Point of Difference Seasonal Unemployment
Jobs This happens when people are unable to find jobs for some months of a year.
Example Farmers working on a seasonal crop have work before the season such as digging, sowing, planting, harvesting, threshing, fertility checks, etc.

What does Nurkse say about disguised unemployment in economics?

But Nurkse rejects it. (ii) Disguised Unemployment: According to Nurkse, the disguised unemployment will finance for growth. But the domestic resources are not sufficient, they can partially meet the requirements of growth.

Who is Ragnar Nurkse and what did he do?

Undoubtedly, Ragnar Nurkse, the great Estonian-American economist, was undoubtedly one of the most rigorous theoreticians and therefore his contribution to the sub-discipline of development economics deserves special attention when discussing the relevance of classical development economics for today.

What was Ragnar Nurkse’s theory of circular causation?

It rather wishes to reconstruct one of the classical theories, Nurkse’s idea of the circular causation of a lack of real capital in poor countries, “as faithfully as possible to the times in which they were written” (Blaug 2001, 151).

How can disguised unemployment be used for Economic Development?

According to this, disguised unemployment implies a disguised saving potential and if proper efforts are made, it can be used for economic development. This is a potential source of capital formation.