Study of Underemployment

6250 Words Dec 24th, 2008 25 Pages
Labour Economics



SECTION I 1. Introduction 2. Definition of Underemployment 3. Conceptual framework 4. Underemployment 5. Underemployment-features and reasons 6. Underemployment equilibrium

SECTTION II 1. Problem statement and Objectives 2. Methodology 3. Analysis 4. Observations

SECTION III 1. Conclusion 2. Detection of invisible underemployment 3. Solutions 4. Measure to combat underemployment Section I

1. Introduction Most economists instinctively dismiss the term underemployment when they first encounter it. The conventional wisdom is that someone is working, seeking work, or voluntarily out of the labor force. If they do not like their job or the
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As for example, a medical doctor is driving a cab. To complement the labor force approach this phenomenon has led to the introduction of the concept of underemployment.



4.Underemployment Underemployment is the term used to designate the situation of those who are able to find employment only for shorter than normal period such as part-time workers, seasonal workers, or day or casual workers. The term may also describe the condition of workers whose education or training makes them overqualified for their jobs. Underemployment can be considered in two forms. • Visible underemployment : This reflects an insufficient volume of work • Invisible underemployment : This reflects an insufficient use of skills and experience, or low productivity

a. Visible Unemployment According to the International Labour Organisation (ILO) definition adopted in 1998, time-related underemployment exists when the hours of work of an employed person are below a threshold, and are insufficient in relation to an alternative employment situation in which the person is willing and available to engage. More specifically, persons in time-related underemployment comprise all employed persons who satisfy the following three criteria:

• Willingness to work additional hours – the ILO recommends that those who have actively sought to work additional hours should be distinguished from those who have not. •

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