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Employer Power and Employment in Developing Countries

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  • Chau, Nancy H.

    (Cornell University)

  • Kanbur, Ravi

    (Cornell University)

  • Soundararajan, Vidhya

    (Indian Institute of Technology, Bombay)

Abstract

The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labor markets. This assumption matters for analysis and policy prescription. There is growing evidence that the competitive labor markets assump- tion is not valid for developing countries. Our objective in this paper is to review this evidence, to present theoretical and policy perspectives which follow from it, and to highlight areas for further research.

Suggested Citation

  • Chau, Nancy H. & Kanbur, Ravi & Soundararajan, Vidhya, 2022. "Employer Power and Employment in Developing Countries," IZA Discussion Papers 15514, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15514
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    Cited by:

    1. Gindling, T. H. & Ronconi, Lucas, 2023. "Minimum Wage Policy and Inequality in Latin America and the Caribbean," IDB Publications (Working Papers) 12931, Inter-American Development Bank.
    2. Joshua Budlender & Ihsaan Bassier, 2023. "Rent sharing, wage floors, and development," WIDER Working Paper Series wp-2023-132, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    employer power; employment; developing countries;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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