Monday, August 24, 2009
John Robinson was perhaps the first, economist who used term ‘disguised unemployment’. But she used this term for the people taking to occupation with comparatively low productivity and income instead of occupation of high productivity and large income during periods of depression in the developed and advanced countries.
But the term ‘disguised unemployment’ it is used in different sense in the under developed countries. In under developed countries ‘disguised unemployment’ refers to a situation where too many people are engaged in agriculture. A common characteristic of the over-populated under developed countries is that large majority of population draw their lively hood from agriculture. In a situation of rapidly increasing naturally a large number of people gravitate to land, because sufficient employment opportunities are not available in the non-agriculture sector to absorb the growing population. The result is that more people are apparently engaged in agriculture than are warranted by the size of land. Holdings and capital available and the techniques of cultivation. If some of them are with drawn it will not reduce agricultural output and may perhaps increase it because as it is said too many cooks spoil broth. This disguised unemployment is found in the self employed agricultural population.The term disguised unemployment is used to refer such a situation because such people are apparently employed. In fact they are unemployed or only partly employed and their unemployment is concealed. Tags: Macro Economics
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