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Evaluating the Social Cost of Job Creation

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Author Info
CHUN-YAN KUO (Department of Finance, Canada)
Abstract

The paper discusses the principal labour market distortions and their effects on the social cost of jobs created in industrial projects. Two alternative approaches – a partial and a general equilibrium analysis - have been put forth in a systematic way to estimate the social cost of job creation. The general equilibrium analysis provides a dynamic analysis, allowing for labour migration between regions and the multiplier effects of job creation projects on the project region. The paper also presents two case studies -- a coal project in northeast British Columbia and a newsprint mill project in Quebec -- to demonstrate how economic theory can be applied to the practical evaluation of industrial projects.

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File URL: http://www.queensjdiexec.org/publications/qed_dp_174.pdf
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Publisher Info
Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 1991-12.

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Length: 16 pages
Date of creation: Apr 1997
Date of revision:
Handle: RePEc:qed:dpaper:174

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Related research
Keywords: multiplier effects; job creation; supply price; induced migrants; social cost; unemployment insurance benefit;

Find related papers by JEL classification:
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

References listed on IDEAS
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  1. Glenn P. Jenkins & Chun-Yan Kuo, 1978. "On Measuring the Social Opportunity Cost of Permanent and Temporary Employment," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 220-39, May. [Downloadable!] (restricted)
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Did you know? Springer Verlag was the first commercial publisher to be listed on RePEc.

This page was last updated on 2009-12-10.

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