Urbanization and Labor Market Informality in Developing Countries
AbstractRapid and uncontrolled migration created by the population moving from rural to urban areas causes serious problems from the viewpoint of labor markets. Increases in rural-urban migration flows is contributing to a larger urban labor supply. This increasing labor supply has produced an increasing urban unemployment rate and a deterioration in the quality of employment, as it is evident from the increased informal employment rates. One of the most distinctive features of the economies in developing countries is the fact that more than half of workers are employed in the urban informal sector. Urbanization and informal sector are joint and rising trends in these countries. The informal sector represents a significant part of the economy, and certainly of the labor market in developing economies, and plays a major role in employment creation, production and income generation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18247.
Date of creation: 2009
Date of revision:
urbanization; informal labor market; urban labor market; rural- urban migration; developing countries;
Find related papers by JEL classification:
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-GEO-2009-11-07 (Economic Geography)
- NEP-LAB-2009-11-07 (Labour Economics)
- NEP-MIG-2009-11-07 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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