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Measuring labour absorption problems in developing countries: Limitations of the concept of unemployment
Author(s) -
SYLLA Ndongo Samba
Publication year - 2013
Publication title -
international labour review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.433
H-Index - 46
eISSN - 1564-913X
pISSN - 0020-7780
DOI - 10.1111/j.1564-913x.2013.00167.x
Subject(s) - unemployment , economics , work (physics) , full employment , developing country , unemployment rate , labour economics , macroeconomics , economic growth , mechanical engineering , engineering
. The “standard” unemployment rate is often criticized for omitting large numbers of people who are classified as employed or as not economically inactive, when in fact their situation amounts to unemployment. The author discusses the limitations of this standard definition for developing countries. After reviewing the methodological and statistical problems posed by the standard rate, he looks at the reality behind the words in contexts where the labour market is highly segmented. He shows that the standard unemployment rate underestimates excess labour supply and is a poor indicator of the Decent Work deficit, and considers its limitations in guiding economic policy.