Question

Distinguish between disguised unemployment in rural areas and under employment in urban areas

Answer 1

Disguised Unemployment:

(i) A situation wherein marginal productivity of labour is zero. It is not visible and found among wage earners, mostly in agriculture.

(ii) It is mostly found in agriculture

(iii) It is found in rural sectors only.

(iv) The work requires the service of five people but engages eight people.

The problem of underemployment is most common in the service sector in the urban areas.  It is a condition in which many people work in a service sector but they earn very little because they work less than willpower.

 

For example: in the service sector, many people work but they earned in little amount.The service sector is the tertiary sector of Indian economy.

Hope this will help you.

Answer 2

Answer:

Explanation:

Disguised unemployment in rural areas occurs when there are more than required number of people working on a field..for example

If 4 ppl are needed for a work and 8 ppl are doing the same work then the other 4 are disguisly unemployed

..and if we remove 4 ppl out of the field ..then no difference in the productivity..

Under unemployment in urban areas is seen in casual labourers and rickshaw puller

Mostly the ppl. Engaged here are seasonal workers.and are employed only in some parts of the year with less wages