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Unemployment Costs

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Author Info

  • Gheorghe Pîrvu

    (University of Craiova Faculty of Economics and Business Administration)

  • Adriana Totîlca

    (University of Craiova Faculty of Economics and Business Administration)

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    Abstract

    Unemployment is an imbalance of the labor market at national level - an excess of supply over demand levels and work with different evolutionary directions of countries and periods, which currently has a permanent character, but does not rule out the existence of employment status full labor. Unemployment costs, directly or indirectly, reveals that this phenomenon is a waste of human and financial resources generated by the use of an incomplete production funds, with implications for social costs. Direct costs are highlighted in the form of financial payments to the fund for social protection of unemployed, which is mainly used to pay unemployment benefits, support allowance, qualification and retraining of unemployed. Indirect costs are generated by reducing overall production and income that could benefit the entire population.

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    File URL: http://feaa.ucv.ro/AUCSSE/0039v1-009.pdf
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    Bibliographic Info

    Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Annals of Computational Economics.

    Volume (Year): 1 (2011)
    Issue (Month): 39 ()
    Pages: 53-60

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    Handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:53-60

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    Related research

    Keywords: direct costs; indirect costs; the social cost; unemployment; gross national product; national income;

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