Make-work is a term used in economics and labor management to describe the practice of employing individuals in jobs that have minimal economic value. This practice is primarily aimed at reducing unemployment rates rather than contributing to significant productivity or economic growth.
Historical Context
Origins of Make-Work
The concept of make-work has been utilized in various forms throughout history, particularly during economic downturns. For example, during the Great Depression in the 1930s, numerous governments initiated public works projects to create jobs, even when these projects did not always result in long-term economic benefits.
Historical Examples
- The Great Depression: Government programs like the Works Progress Administration (WPA) in the United States provided employment through infrastructure projects that sometimes had dubious economic value.
- Soviet Union Era: State-sponsored jobs were often more about ensuring employment than about economic efficiency, leading to highly populated but non-essential departments.
Types and Examples of Make-Work
Government-Sponsored Make-Work
Government programs sometimes implement make-work projects to address high unemployment rates. These projects might include unnecessary infrastructure work, beautification projects, or other tasks that don’t provide substantial long-term economic benefits.
Private Sector Make-Work
In the private sector, make-work may occur in scenarios where companies retain employees in roles that are redundant or unnecessary to maintain social and morale cohesion, or to prepare for anticipated business expansions.
Special Considerations
Economic Impact
While make-work can provide short-term employment and income for individuals, it often does not contribute to long-term economic growth. Resources allocated to make-work could potentially be better utilized in sectors that drive innovation and productivity.
Social and Psychological Factors
- Work Satisfaction: Employees engaged in make-work might experience lower job satisfaction, knowing their work has no lasting value.
- Social Stability: In contrast, make-work can help maintain social stability during economic crises by reducing unemployment and the associated social unrest.
Comparative Analysis
Make-Work vs. Productive Work
- Productive Work: Generates tangible economic value and contributes to economic growth and development.
- Make-Work: Primarily aimed at job creation without significant long-term economic contribution.
Alternatives to Make-Work
- Job Training Programs: Instead of employing individuals in make-work roles, investment in skill development and education can ultimately result in a more skilled, productive workforce.
- Public Investment in Innovation: Funding projects that lead to technological innovation and improved infrastructure can create jobs with lasting economic benefits.
Related Terms
- Underemployment: A situation where workers are employed in jobs that do not utilize their skills or offer inadequate hours.
- Keynesian Economics: An economic theory suggesting that increasing government expenditures and lowering taxes can stimulate demand and pull an economy out of a depression.
- Public Works: Government-funded projects aimed at building public infrastructure, which can sometimes overlap with make-work but often have clear economic benefits.
FAQs
What is the primary purpose of make-work?
Does make-work have any long-term benefits?
How can economies avoid the pitfalls of make-work?
References
- Keynes, J.M. (1936). The General Theory of Employment, Interest and Money.
- Bordo, M.D., Erceg, C.J., & Evans, C.L. (2000). Money, Fiscal Policy, and the Role of the State in Economics.
Summary
Make-work is a practice employed primarily to tackle high unemployment by creating jobs that have minimal economic value. While it can provide short-term employment and stabilize society during economic crises, its long-term economic benefits are generally limited. Proper allocation of resources to skill development and innovative public investments may serve as more effective alternatives in the long run.
