Modelling Labour Markets in LICs with Imperfect Data

A Complex Labour Market Segmentation Model Can Ensure Well-Targeted, Evidence-Based Policy Interventions for Low Income Countries in Africa

Abstract

There is no clear empirical appreciation of the most appropriate labour market segments both across and within lower income countries (LICs) in Africa. This study compares descriptive labour markets across three LICs: Kenya, Tanzania and Zambia, allowing the data to drive the design of the segmentation model. The study demonstrates the value of a more complex labour market model, which considers the full range of observable labour markets segments. It argues that a better understanding of these labour market segments is necessary to ensure well-targeted, evidence-based policy intervention.

This research is part of the Growth and Labour Markets in Low-Income Countries programme

Citation

Bhorat et al. (2018). Modelling Labour Markets in LICs with Imperfect Data: A Complex Labour Market Segmentation Model Can Ensure Well-Targeted, Evidence-Based Policy Interventions for Low Income Countries in Africa. GLMLIC Policy Brief No. 20. Available at: https://g2lm-lic.iza.org/publications/pb/pb20/

Modelling Labour Markets in LICs with Imperfect Data: A Complex Labour Market Segmentation Model Can Ensure Well-Targeted, Evidence-Based Policy Interventions for Low Income Countries in Africa.

Published 1 March 2018