Moonlighting and the Failure of Social Inclusion

Posted: 22 Mar 2012 Last revised: 1 Nov 2014

See all articles by Maniklal Adhikary

Maniklal Adhikary

University of Burdwan

Shyamsundar Pal

Taki Government College

Date Written: March 1, 2012

Abstract

The generations of productive and gainful employment are important agenda for social inclusion. To compute obligatory creation of new job vacancies for that agenda, governments try to estimate ‘socially optimal employment path over time’ for reference. In reality, computation of ‘socially optimal employment path over time’ is very difficult to materialize due to prevalence of generously proportioned moonlighting (simultaneous employment in more than one job) in the labour market. This paper is intended to show that asymmetric information about the propensity of moonlighting prevents national authority from fixing the socially optimal employment path.

The governments (or the planning authorities) calculate the socially optimal employment path over time’ by maximizing the expected increase in the real GDP due to the newly created vacancies. But creation of vacancies does not mean generation of employment. If a portion of newly generated jobs are acquired by the moonlighters, the actual increase in the level of employment will be less than the projected increase. The asymmetric information about the degree of drainage of newly generated jobs into the hands of moonlighters jeopardizes planners’ perception about the movement of employment growth over time. The estimated optimal path without taking into account (or falsely taking into account) the rate of job drainage due to moonlighting cannot reflect the social optimality. The deficiency in perfect information about the moonlighting propensity puts an impediment to the computation of socially optimal employment path. Therefore, the absolute success of the agenda for social inclusion through the generation of productive and gainful employment hindered due to numerous prevalence of moonlighting.

Keywords: Moonlighting, Social Inclusion, Planning

JEL Classification: J29, O17, P21, O29

Suggested Citation

Adhikary, Maniklal and Pal, Shyamsundar, Moonlighting and the Failure of Social Inclusion (March 1, 2012). Available at SSRN: https://ssrn.com/abstract=2026568 or http://dx.doi.org/10.2139/ssrn.2026568

Maniklal Adhikary

University of Burdwan ( email )

Burdwan, W.B.
Burdwan
India

Shyamsundar Pal (Contact Author)

Taki Government College ( email )

Taki
P.O. Taki
24 Parganas, 743429
India

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