Solution of the Problem of Disguised Unemployment
In the under-developed counts. there gut unemployment not only the agriculturalist sector, but there is also large-scale incunabulum the urban areas. In agriculture, underemployment den and disguised hut in the urban area it open, and visible. Now the Tucson is whether should be provided to those who arc totally played or to the partially employed or disguised unemployed people.
When there is not much scope of saving potential ill agriculture for capital formation, the best thing would be to create employment opportunities in the urban areas Cor people who have no jobs. The wise course seems to be first to put the altogether unemployed persons on the job and then solve the problem of disguised unemployment. Our view is that the best method of removing disguised unemployment is to raise agricultural productivity through agricultural improvements. Agricultural productivity can be raised by the use of modem agricultural inputs like high-yielding varieties of seeds, fertilizers in heavy doses, pesticides and ample irrigation facilities. Then there will be new employment opportunities available in agriculture. For instance, more labor is required in a system of multiple-cropping. If this system is extensively adopted, employment will certainly increase or disguised unemployment will decrease.
In this way, the problem of disguised unemployment or under-employment can be solved by raising agricultural productivity or by agricultural development. Since in disguised unemployment some workers do not get enough work to do and their removal will not reduce output, their marginal productivity is zero. But when there is a green revolution, as a result of which agricultural productivity will go up and more and new employment opportunities will be available. the problem of disguised unemployment will be automatically solved.
Thus, we see that to remove disguised employment it is not necessary to withdraw those workers from agriculture whose marginal productivity is zero. But we should raise their marginal productivity in that very sector by improving agricultural practices. This would solve their problem and there will be no difficulties that have to be faced in withdrawing the disgustedly unemployed labor and putting them to productive work elsewhere.