Social cost of unemployment, Managerial Economics

The Social Cost of Unemployment

i.      For the individual, there is the demoralizing effect which can be devastating particularly when they are old.  This is because as some job seekers become more and more pessimistic about their chances of finding a job, so their motivation is reduced and their changes of succeeding in finding jobs become even more remote.

ii.     Many of the longer-term unemployed become bored, idle, lose their friends and suffer from depression

iii.    There is also evidence of increased family tension leading in some cases to violence, infidelity, divorce and family breakups.

iv.    Unemployment may also lead to homelessness, as in some circumstances building societies may foreclose on a mortgage if the repayments are not kept up.

v.     Long-term unemployment may also lead to vandalism, football, hooliganism and increases in the crime rate and insecurity in general.

The cost to the exchequer (Ministry of Finance)

There is increasing dependency ratio on the few who are employed in the form of:

The loss of  tax revenues which would otherwise have been received:  This consists mostly of lost income tax but also includes lost indirect taxes because of the reduction in spending.

The loss of national insurance contributions which would otherwise have been received.

Posted Date: 11/30/2012 2:54:46 AM | Location : United States







Related Discussions:- Social cost of unemployment, Assignment Help, Ask Question on Social cost of unemployment, Get Answer, Expert's Help, Social cost of unemployment Discussions

Write discussion on Social cost of unemployment
Your posts are moderated
Related Questions
Q. Explain about Inventory Economies? Inventory Economies: Role of inventories is to aid the firm in meeting random changes in the output and the input sides of the operations

Fundamental of managerial economic

'' monopoly is good for consumer welfare" is this crrect

Dynamics  of Unemployment and  Real  Wages through Productivity Shocks   The model  that you  are  studying here  is  in  the  tradition of  the  real  business cycle theory th

NATIONAL DEBT Taxation does not often raise sufficient revenue for the Government Expenditure.  So, governments resort to borrowing.  This government borrowing is called Publi

prepare a break-even analysis to determine volume required to cover costs with and without a specified profit target and price.

Define the Managerial economics Managerial economics is thus a study of application of managerial skills in economics. It assists in determining, anticipating and resolving po

Monetary Policy Meaning of Economic Growth: The primary function of an whether socialist or capitalist is to satisfy people maximum wants. It must produce consumer goods to make

Factors determining Elasticity of demand Ease of substitution. Nature of the commodity i.e. whether it is a necessity of life, luxury or addictive. Consumers

Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo