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Labor Expenditures and Benefit-Cost Accounting in Times of Unemployment

  • Haveman Robert H.

    (University of Wisconsin - Madison)

  • Farrow Scott


We summarize procedures for assessing the benefits and costs of using labor inputs in public projects. Examples are provided to illustrate how information on labor inputs can be analyzed and presented such that, should the analyst choose, labor services generate elements of both benefit and cost in times of high unemployment; however, this is not generally correct in times of full employment. Our analysis is consistent with the overall goal of identifying those projects which are estimated to improve efficiency—those with social benefits in excess of social costs.

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Article provided by De Gruyter in its journal Journal of Benefit-Cost Analysis.

Volume (Year): 2 (2011)
Issue (Month): 2 (April)
Pages: 1-9

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Handle: RePEc:bpj:jbcacn:v:2:y:2011:i:2:n:7
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