Measuring Employment in Developing Countries

This paper is concerned with measuring categories of employment that have an economy-wide meaning in the developing world. Employment has always had two interconnected sides, output and income, and these two dimensions of employment operate under very different conditions in advanced and developing economies. A developing economy is divided into two parts, organised and unorganised in respect of labour. A large amount of surplus labour exists in the unorganised part creating underemployment that manifests itself in a range of forms of employed labour. In this situation the headcount of the employed overestimates economy-wide employment; and the headcount of the unemployed seriously underestimates economy-wide unemployment.