Jobs and Job Search in Developing Countries: Nice Work if You Can Get it!

Abstract

This chapter lays out some fundamentals of the jobs “problem” in developing countries. It focuses first on dimensions of the “intermediation” or connecting-to-jobs problem – showing how poorly job search functions in developing countries, providing evidence that most job search is done through informal contacts, that is, “friends and family” and how this particularly disadvantages the poor. It looks further at the intermediation problem in developing countries by showing that part of the intermediation problem is “hidden” in those who are poorly employed, discouraged, have the wrong set of skills or feel they must migrate to work. It argues that the intermediation problem is only a component of a much larger jobs problem that includes too few good jobs and limited employment demand. Although “if it’s not one thing, it’s another” regarding what impacts the jobs problem, the chapter argues that getting job search to be more transparent, more efficient, and fairer in developing countries must be part of the policy solution to insuring labor markets work more effectively, particularly for the poor.