distinguish between open and disguised unemployment in a tabular form explain it by example - Economics - Unit III- Employment Growth Informalisation and Other Issues

Question

distinguish between open and disguised unemployment in a tabular
form explain it by example

Shruti Mishra · Accepted Answer

Dear Student,
Hereunder is the solution provided :-

Open Unemployment
Disguised unemployment

(i) Open employment refers to the
situation in which an individual has no job and unable to earn his
livelihood
(i) Disguised unemployment refers to the
situation in which people work at a place where there is no more
people are required The situation in which people are apparently
working but all of them are made to work less then their
potential

(ii) This unemployment is clearly
visible
(ii) This unemployment is hidden

(iii) People's unemployment will affect
the production of goods and services in an economy
(iii) People's unemployment won't affect
the production of goods and services because here already more than
requirement of people are working so if they leave that's not a big
deal

(iv)Under this category,person is not
earning even a penny
(iv) Under this category, person earns
some income

Example of Open unemployment :- Educated
unemployed OR unemployment due to migration from rural area to
urban area

Example of Disguised unemployment
:-Suppose three brothers are running a shop and if one brother is
withdrawn from the shop and output/sales of that shop remains
unaffected OR whole family of a farmer is engaged in farming,even
if we remove one or two members of the family to other jobs, then
also production of the farm remains the same

Regards

Open Unemployment	Disguised unemployment
(i) Open employment refers to the situation in which an individual has no job and unable to earn his livelihood.	(i) Disguised unemployment refers to the situation in which people work at a place where there is no more people are required. The situation in which people are apparently working but all of them are made to work less then their potential.
(ii) This unemployment is clearly visible.	(ii) This unemployment is hidden.
(iii) People's unemployment will affect the production of goods and services in an economy.	(iii) People's unemployment won't affect the production of goods and services because here already more than requirement of people are working so if they leave that's not a big deal.
(iv)Under this category,person is not earning even a penny.	(iv) Under this category, person earns some income.
Example of Open unemployment :- Educated unemployed OR unemployment due to migration from rural area to urban area.	Example of Disguised unemployment :-Suppose three brothers are running a shop and if one brother is withdrawn from the shop and output/sales of that shop remains unaffected. OR whole family of a farmer is engaged in farming,even if we remove one or two members of the family to other jobs, then also production of the farm remains the same.