Amartya Sen’s views on disguised unemployment offer a critical perspective, emphasizing the multifaceted nature of this phenomenon and challenging simplistic interpretations. Sen acknowledges the concept of disguised unemployment, particularly in the context of developing economies, where surplus labour exists in agriculture or informal sectors without significantly contributing to output. However, he argues that the idea of marginal productivity being zero for surplus labour can be overly simplistic and may overlook important economic and social dimensions.
Amartya Sen points out that even if the marginal productivity of certain workers appears negligible, their contribution may still hold intrinsic value for household survival or community well-being. For instance, labour in subsistence farming often supports family livelihoods, even if it doesn’t contribute directly to measurable market output. Thus, labelling this ” labour as entirely “unemployedor “wasted” fails to capture its broader economic and social significance.
A key aspect of Sen’s critique is his focus on the quality of employment rather than the numeric(binary) classification of employed versus unemployed. He argues that under employment, low productivity, and poor utilization of skills are often more pressing issues than disguised unemployment itself. From his perspective, the goal should not merely be to transfer surplus labour to other sectors but to ensure that such labour is meaningfully employed, contributing to both individual well-being and societal progress.
Sen also highlights the importance of creating conditions for productive employment through investments in education, health, and skill development. By enhancing the capabilities of workers, economies can ensure that labour is more effectively utilized in diverse sectors, including agriculture, industry, and services. For Sen, addressing disguised unemployment requires a broader approach that goes beyond reallocating labour, focusing instead on increasing overall productivity and improving the quality of life.
Overall Amartya Sen’s views on disguised unemployment emphasize its nuanced nature, highlighting the need to consider social and economic contexts. He advocates for strategies that prioritize enhancing human capabilities and ensuring meaningful, productive employment over simply redistributing labour.
