Monga, Célestin2014-02-042014-02-042013-10https://hdl.handle.net/10986/16877This paper assesses some of the main strands of the theoretical literature on unemployment and employment and shows that their interesting conclusions may not be transferable to low-income countries whose endowment and production structures are profoundly different from that of high-income economies. It then tackles the knowledge deficit on employment creation by shedding light on the new economic opportunities that latecomers may derive from the dynamics of globalization -- especially the economic success of large emerging economies such as China and Brazil. It offers a simple analytical framework for identifying opportunities for labor arbitrage in the global economy and suggests a practical policy framework for exploiting them.en-USCC BY 3.0 IGOACTIVE LABORACTIVE LABOR MARKETACTIVE LABOR MARKET POLICIESACTIVE LABOR MARKET PROGRAMSADJUSTMENT PROCESSAGE GROUPSAGGREGATE DEMANDAGGREGATE UNEMPLOYMENTAGRICULTUREARBITRAGEAVERAGE COSTSAVERAGE LABOR COMPENSATIONAVERAGE WAGEBARGAINING INSTITUTIONSCENTRAL BANKSCLASSICAL ECONOMICSCLASSICAL ECONOMISTSCOLLEGE GRADUATECOLLEGE GRADUATESCOMPARATIVE ADVANTAGECOMPARATIVE ANALYSISCOMPETITIVE ADVANTAGECOMPETITIVENESSCONSUMERSCREATING JOBCREATIVE DESTRUCTIONCRISESDEADWEIGHTDEADWEIGHT LOSSESDECENTRALIZATIONDEVALUATIONDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT STRATEGIESDEVELOPMENT STRATEGYDIRECT JOB CREATIONDISADVANTAGED GROUPSDISGUISED UNEMPLOYMENTDIVIDENDSDOWNWARD PRESSUREECONOMIC ANALYSISECONOMIC BENEFITSECONOMIC GROWTHECONOMIC HISTORYECONOMIC INEFFICIENCYECONOMIC NEEDSECONOMIC PERFORMANCEECONOMIC PROGRESSECONOMIC RECOVERYECONOMIC RESEARCHECONOMIC SYSTEMSECONOMIC THEORIESECONOMIES OF SCALEEFFICIENCY WAGE THEORIESEMPLOYMENT GENERATIONEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESEMPLOYMENT OPPORTUNITYEMPLOYMENT SERVICESEMPLOYMENT SUBSIDIESEXCESS DEMANDEXOGENOUS VARIABLESEXPECTED WAGESEXPORT GROWTHEXPORTSEXTERNALITIESFINANCIAL CRISISFINANCIAL SECTORFINDING EMPLOYMENTFIRM ENTRYFULL EMPLOYMENTGDPGDP PER CAPITAGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELSGOVERNMENT REGULATIONSHIGH UNEMPLOYMENTHOUSEHOLD ENTERPRISEHOUSEHOLD SURVEYHUMAN CAPITALIMPERFECT INFORMATIONINCOMEINCREASING RETURNSINDUSTRIAL ECONOMIESINFLATION RATEINFORMAL SECTORINNOVATIONINTEREST RATESINTERNATIONAL MARKETSINVOLUNTARY UNEMPLOYMENTJOB CREATIONJOB DESTRUCTIONJOB MARKETJOB SEARCHJOB SEARCH ASSISTANCEJOB SEEKERSJOBSLABOR COSTLABOR COSTSLABOR FORCELABOR LAWSLABOR MARKETLABOR MARKET CONDITIONSLABOR MARKET INSTITUTIONSLABOR MARKET ISSUESLABOR MARKET REFORMSLABOR MARKET REGULATIONSLABOR MARKETSLABOR PRODUCTIVITYLABOR SUPPLYLABOURLAYOFFSLDCSLONG-TERM EMPLOYMENTMACROECONOMIC ADJUSTMENTMACROECONOMIC STABILITYMANUFACTURING INDUSTRIESMANUFACTURING WAGESMARGINAL PRODUCTMARGINAL PRODUCTIVITYMARKET ECONOMIESMARKET FAILURESMONETARY POLICIESMONETARY POLICYMONOPOLYMOTIVATIONMULTILATERAL TRADEMULTIPLIER EFFECTMULTIPLIER EFFECTSNAIRUNATIONAL ECONOMIESNATIONAL INCOMENATIONAL OUTPUTNATURAL RATE HYPOTHESISNATURAL RATE OF UNEMPLOYMENTNATURAL RESOURCESNEW CLASSICAL ECONOMISTSNOMINAL WAGESOCCUPATIONOCCUPATIONAL MOBILITYOLDER WORKERSOUTPUTSPASSIVE LABORPER CAPITA INCOMEPERSISTENT UNEMPLOYMENTPOSITIVE EXTERNALITIESPREVIOUS SECTIONPRICE LEVELSPRIVATE EMPLOYMENTPRIVATE FIRMSPRIVATE PARTNERSHIPSPRIVATE SECTORPRIVATE SECTOR JOBSPRODUCT MARKETPRODUCT MARKETSPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTIVE ASSETSPRODUCTIVITY INCREASESPROTECTIONISMPUBLIC EMPLOYMENTPUBLIC SECTOR EMPLOYEESPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR JOBSPUBLIC WORKSPURCHASING POWERRAPID INDUSTRIALIZATIONREAL INTEREST RATESREAL WAGEREAL WAGESRENT SEEKINGRURAL YOUTHSERVANTSSKILLED LABORSKILLED WORKERSKILLED WORKERSSMALL BUSINESSESSOCIAL INCLUSIONSTATIC ANALYSISSTRUCTURAL CHANGETAXATIONTELECOMMUNICATIONSTEMPORARY JOBSTOTAL OUTPUTTRADE UNIONSTRAINING PROGRAMSTRANSITION ECONOMIESUNEMPLOYEDUNEMPLOYED WORKERSUNEMPLOYMENTUNEMPLOYMENT COMPENSATIONUNEMPLOYMENT INSURANCEUNEMPLOYMENT RATEUNEMPLOYMENT RATESUNEMPLOYMENT STATISTICSURBAN WORKERSVALUE ADDEDVALUE JUDGMENTSWAGE BARGAININGWAGE BILLWAGE DETERMINATIONWAGE EMPLOYMENTWAGE SUBSIDIESWEALTHWEALTH CREATIONWORKERSYOUNG WORKERSYOUTH EMPLOYMENTYOUTH UNEMPLOYMENTWorld Bank10.1596/1813-9450-6661