Job Creation in a Multi-Sector Labor Market Model for Developing Economies

Abstract

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Where to create jobs to reduce poverty: cities or towns?

“…Further complications like skill acquisition while waiting for a modern sector job, which brings into play dynamic considerations, have also been introduced. A recent example of this development, which also has references to previous work in this tradition, is Basu, Chau, Fields and Kanbur (2016).…”

Migrants, Towns, Poverty and Jobs: Insights from Tanzania

“…For a recent paper that incorporates many of these advances, seeBasu, Chau, Fields and Kanbur (2016).16 This section draws on the analysis presented in Christiaensen, DeWeerdt and Kanbur (2017).17 Everyone would leave the countryside if wr<w0<w. With t, the condition for a non-zero rural population in equilibrium becomes w0<wr+t <w. Whether people migrate depends not only on the wage differential, but also on the migration cost.…”

Informality and work status

“…Today, the bare minimum of four categories are necessary for understanding developing country labour markets. For example, a recent theoretical model has three employment states-wage employment, free-entry self-employment, and high-wage self-employment-plus an unemployment category (Basu et al 2019). Having two types of informal work (or, alternatively, two types of self-employment) is essential to capture the reality that some workers are engaged in informal employment, not because they have to be but because they want to be.…”