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This article surveys the empirical evidence for the hypothesis that unemployment rates are low in very poor countries because workers cannot afford long periods of job search. Evidence is surveyed from descriptive labour market studies, migration studies, and education studies taken from Africa, Asia and Latin America. Much of it is consistent with the hypothesis. Policy recommendations include reducing reliance on the open unemployment rate as a measure of labour market conditions, and improving access of low-income urban workers to employment services. |
