New Government Employment and True Unemployment. Suppose that a government decides to acknowledge the importance of the labor performed by homemakers and hires them under the category ‘Government Home...


New Government Employment and True Unemployment. Suppose that a government decides to acknowledge the importance of the labor performed by homemakers and hires them under the category ‘Government Home Workers’. It pays them modest salaries and does not expect them to do any new work apart from their current chores. What will happen to the measured unemployment rate of the country? Under these circumstances, do changes in the measured unemployment rate accurately reflect any changes in the underlying economic situation and production?



May 20, 2022
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