Labor Market Policy in Developing Countries : A Selective Review of the Literature and Needs for the Future
This paper presents a selective overview of the literature on modeling labor market policies in developing countries. It considers welfare economics, theoretical models, and empirical evidence to highlight the three general features needed in futur...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/09/8340426/labor-market-policy-developing-countries-selective-review-literature-needs-future http://hdl.handle.net/10986/7364 |
| Summary: | This paper presents a selective overview
of the literature on modeling labor market policies in
developing countries. It considers welfare economics,
theoretical models, and empirical evidence to highlight the
three general features needed in future research on labor
market policy in developing countries. The author identifies
desirable research components (welfare economics,
theoretical modeling, and empirical modeling) and pitfalls
in the literature (inappropriate use of productivity,
reliance on wrong kinds of empirical studies, lack of
cost-benefit analysis, attention to only a subset of the
goods and bads, and fallacy of composition). The paper
concludes with suggested topics and methods for future
research. The author states that sound labor market policy
requires sound labor market models. The paper makes a case
for developing policy based on explicit evaluation criteria,
specific theoretical models, and comprehensive empirical evidence. |
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