The correct option is 2 and 3 only
Explanation
Unemployment is broadly classified based on the nature of joblessness and the sector in which it occurs. The distinction between open unemployment and disguised unemployment lies in the visibility of idleness and the marginal productivity of the worker.
Statement-wise Analysis:
- Statement 1 is Incorrect.
Open Unemployment refers to a situation where a person is willing and able to work at the prevailing wage rate but is unable to find any work. In this case, the person is visibly idle and completely without a job. The situation described in the statement-working at lower wages or below one's capability-is known as Underemployment.
- Statement 2 is Correct.
Disguised Unemployment is a phenomenon where more people are employed in an activity than are actually needed. In this scenario, the marginal productivity of the additional labor is zero. If these surplus workers are removed, the total output remains unchanged. This is a form of hidden unemployment.
- Statement 3 is Correct.
Open Unemployment is typically more prevalent in the industrial sector and urban areas (e.g., educated unemployment), where individuals migrate for jobs but fail to find them. Conversely, Disguised Unemployment is a characteristic feature of the rural agricultural sector in developing economies like India, where excess family labor is absorbed on limited land holdings due to a lack of alternative employment opportunities.
Key Takeaway:
Open Unemployment involves visible idleness where the worker has no job, whereas Disguised Unemployment involves workers who appear employed but contribute nothing to the total output (zero marginal productivity).