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Labor Expenditures and Benefit-Cost Accounting in Times of Unemployment

Published online by Cambridge University Press:  19 January 2015

Robert H. Haveman  and
Scott Farrow
Robert H. Haveman
Affiliation:
University of Wisconsin - Madison
Scott Farrow
Affiliation:
UMBC
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Abstract

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We summarize procedures for assessing the benefits and costs of using labor inputs in public projects. Examples are provided to illustrate how information on labor inputs can be analyzed and presented such that, should the analyst choose, labor services generate elements of both benefit and cost in times of high unemployment; however, this is not generally correct in times of full employment. Our analysis is consistent with the overall goal of identifying those projects which are estimated to improve efficiency—those with social benefits in excess of social costs.

Keywords

laborunemploymentsurplustax
Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 2 , Issue 2 , 25 April 2011 , pp. 1 - 9
Copyright
Copyright © Society for Benefit-Cost Analysis 2011

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