Question

Jobs creation, and job loss, is included in benefit-cost analysis calculations:

a. never.

b. usually.

c. only for transitional job losses or gains.

d. possibly, depending if an assumption of full employment or structural unemployment is adopted.

Answer 1

b) usually

Cost benefit analysis is sometimes also called benefit cost analysis .Cost benefit analysis. Public policies usually affect employment by directly creatinfg  jobs,assisting job creation or increasing labor supply.In the labor markets where unemployment is very high , employment creation of this nature ,will have net eficiency benefits and should be included in cost benefit analysis.By hiring workers , public policies may directly create jobs.Public policies may increase private job creation.For eg economic development may increase job opportunties.in the local area . Again construction of dams may increase tourism jobs in that area.So there is efficiency benefit from such job creation. An increased labor supply due to training may increase the skill of the labourer and may remove other workers from jobs .So job loss is included in benefit cost analysis.