HOW HOUSEHOLDS DEAL WITH UNEMPLOYMENT?

How Households Deal With Unemployment?

How Households Deal With Unemployment?

Introduction

The causes and consequences of unemployment has been an issue of concern for the economists. In the modern societies, unemployment is perceived commonly as a waste of human resources and is most importantly considered to be a source of deprivation for people. Households' unemployment is commonly represented as a sign that causes failure to the market and also influences some workers to prevent from working involuntarily. However, others may consider unemployment of households as a form of leisure in disguise; it is a period when the labor is reallocated to more efficient and effective uses voluntarily. Generally, researchers consider that people get affected by unemployment in three ways: 1) the loss of household incomes or production, 2) a boost in home production from the additional available time, and 3) the impacting directly on the individual well-being (Krueger, 2008).

Households Dealing Unemployment

Historically, unemployment is low in various countries, and is even below 10 percent in a few of them. But the households depict a picture that is less positive if compared to individuals. The society at a glimpse in the year 2010, even in the United Kingdom, the unemployment was significantly low and in single digit. In the year 2005 as many as 13 percent of the people living in households that were headed by a single working individual and none of the others were employed. In Germany, 16 percent of the people are a part of households that are jobless. In France, the jobless households were up to 11 percent despite the continual increment in the unemployment rates. In the US, just 5 percent of the people lived in households that are jobless (Hamermesh, 2000).

Households try dealing with unemployment, by both husbands and wives either join the labor force ...