Executive summary: Labor markets in developing countries fail to match productive workers to jobs, resulting in high unemployment and low wage growth that limit incomes and economic growth.
Key points:
Unemployment is much higher than official statistics when accounting for informal self-employment.
Wages seem too high to clear labor markets, plausibly due to social pressures.
Workers have far lower wage growth over life cycles compared to developed countries.
Rural labor markets are efficient in peak seasons but not in lean seasons, resulting in underemployment.
Solutions are less evident than problems, but private approaches to fixing failures could claim rewards.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, andcontact us if you have feedback.
Executive summary: Labor markets in developing countries fail to match productive workers to jobs, resulting in high unemployment and low wage growth that limit incomes and economic growth.
Key points:
Unemployment is much higher than official statistics when accounting for informal self-employment.
Wages seem too high to clear labor markets, plausibly due to social pressures.
Workers have far lower wage growth over life cycles compared to developed countries.
Rural labor markets are efficient in peak seasons but not in lean seasons, resulting in underemployment.
Solutions are less evident than problems, but private approaches to fixing failures could claim rewards.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.