Verme, Paolo2012-06-212012-06-212006-04https://hdl.handle.net/10986/8711Despite sustained output growth since 1997, low-income Commonwealth of Independent States (CIS) countries (CIS-7) have not experienced growth in employment, a phenomenon observed elsewhere in transitional economies and labeled as "jobless growth." The author addresses the causes of this phenomenon in the CIS-7. He argues that the lack of job creation is explained by a combination of structural factors, including capital-intensive growth, large potential for productivity gains among existing workers, and compartmentalized economies best depicted by a dual labor market framework. Agriculture and industry have performed asymmetrically and grown apart during the recession and during the growth periods. Agriculture provides subsistence and refuge from urban poverty and unemployment but is unable to grow beyond subsistence because it is disconnected from industrial manufacturing and because the agricultural infrastructure is depleted and underinvested. Industry has progressively lost its manufacturing capacity, and focuses on capital-intensive, highly productive sectors, and provides good wages for the few highly skilled workers. With governments and the international community currently refraining from investing in agricultural and industrial policies focused on reviving manufacturing, jobless growth is likely to persist.CC BY 3.0 IGOABSOLUTE TERMSACTIVE LABORACTIVE LABOR MARKETACTIVE LABOR MARKET PROGRAMSAGRICULTURAL OUTPUTAGRICULTURAL PRODUCTIONAGRICULTUREBANK DEPOSITSCENTRAL ASIANDEBTDEFLATORSDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT PROCESSESECONOMIC BARRIERSECONOMIC CONDITIONSECONOMIC CONSEQUENCESECONOMIC DECLINEECONOMIC DEVELOPMENTECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC REFORMSEDUCATED WORKERSELASTICITYEMPLOYMENTEMPLOYMENT GROWTHEMPLOYMENT POLICYEMPLOYMENT SHAREEMPLOYMENT TRENDSENTRY BARRIERSEXCESS SUPPLYEXISTING WORKFORCEEXPORTSFINANCIAL CRISISFINANCIAL SECTORFINANCIAL SYSTEMSFULL EMPLOYMENTGDPGNPGNP PER CAPITAHOUSEHOLD SURVEYINCOMEINCOME SUPPORTINDUSTRIAL DEVELOPMENTINDUSTRIAL SECTORINDUSTRIAL WAGESINDUSTRIALIZATIONINFORMAL SECTORJOB CREATIONJOB PLACEMENTJOBLESS GROWTHJOBSLABOR COSTLABOR DEMANDLABOR FORCELABOR FORCE PARTICIPATIONLABOR MARKETLABOR MARKET FRAMEWORKLABOR MARKET INDICATORSLABOR MARKET SEGMENTATIONLABOR MARKETSLABOR OFFICESLABOR PRODUCTIVITYLABOR SHORTAGESLAND REFORMSLEVEL OF OUTPUTLOW EMPLOYMENTMACROECONOMIC STABILIZATIONMERCHANTSNATURAL RESOURCESOCCUPATIONOPEN UNEMPLOYMENTOUTPUT GROWTHOUTPUT PER CAPITAOUTPUT STRUCTUREPOLICY IMPLICATIONSPOLICY RESEARCHPOLITICAL INSTABILITYPOOR PEOPLEPOOR POLICIESPOSITIVE EXTERNALITIESPOVERTY RATEPOVERTY REDUCTIONPREVIOUS SECTIONPRIVATE SECTORPRO-POORPRODUCTIVITY GAINSPROPERTY RIGHTSPUBLIC SERVICESPUBLIC SPENDINGREAL WAGESRECESSIONRECOMMENDATIONSRETAIL TRADERURAL AREASSECTOR REFORMSSKILLED LABORSKILLED WORKERSSMALL BUSINESSESTOTAL EMPLOYMENTUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT COMPENSATIONUNEMPLOYMENT FIGUREUNEMPLOYMENT FIGURESUNEMPLOYMENT RATEUNEMPLOYMENT RATESURBAN AREASURBAN POVERTYVALUE ADDEDWAGE DIFFERENTIALSWESTERN EUROPEWORKERSWorld Bank10.1596/1813-9450-3893