HPAS/Allied Mains 2022 Answer Writing Challenge Day 177 : Model Answer

QUESTION: Define Voluntary and Disguised unemployment. (4 marks/60 words)

Answer:

The Voluntary Unemployment refers to the situation when the worker deliberately chooses not to work because of a low wage scale or not able to find out the suitable employment for him. Examples of voluntary unemployment are people who refuse certain job offers because their salaries or benefits are not in line with expectations.

Disguised unemployment- it is a situation when more people are working on a land where less are required. The additional workers do not contribute anything to the output and their marginal productivity is zero. Disguised unemployment is true of agriculture in India. Increase in population in rural areas in surplus labour available in agriculture sector. Hence, disguised unemployment is found in this sector.