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Evaluating the Social Cost of Job Creation

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  • 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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Bibliographic 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;

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References

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  1. Glenn Jenkins & JOHN EVANS, 1977. "Measurement Of The Foreign Exchange And Sales Tax Externality On The Value Added Of Labour," Development Discussion Papers 1977-02, JDI Executive Programs.
  2. 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.
  3. Grady, Patrick & Muller, R. Andrew, 1986. "On The Use and Misuse of Input-Output Based Impact Analysis in Evaluation," MPRA Paper 22063, University Library of Munich, Germany.
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