Joan Robinson was perhaps the first economist who used the
term disguised unemployment But she used this tem for the people taking to
occupations with comparatively low productivity and income instead of
occupations of high productivity and large income during periods of depression
in the developed and advanced countries. But the tem disguised unemployment is use in a different sense in
the under developed countries. In the under- developed countries disguised
unemployment refers to a situation where too many people are engaged in
agriculture. A common characteristic of the over populated under developed
countries is that a large majority of population draw their livelihood from
agriculture . In Nurkse’s words “ There is disguised unemployment in the sense
that even with unchanged techniques of agriculture could be removed without
reducing agricultural output the same farm output could be got with a smaller labor force.”
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