Title page -- Copyright page -- Foreword -- Notes on contributors -- Acknowledgements -- List of abbreviations -- 1 Introduction and overview -- 1.1 Chapter summaries -- Bibliography -- 2 The labour market in developing countries* -- 2.1 The employment consequences of abundant labour and scarce capital -- 2.2 The persistence of informality -- 2.3 Agriculture and the rural economy -- 2.3.1 The weather, international commodity prices and growth -- 2.3.2 Staying rural but moving off the farm -- 2.3.3 Multiple job-holding -- 2.4 Labour market structure and status inemployment -- 2.4.1 Non-market work: Work outside the scope of market transactions -- 2.4.2 The labour force participation of women and the level ofeconomic development -- 2.4.3 Status in employment -- 2.4.4 Productivity variance within - ostensibly - the same productmarkets -- 2.5 Structural transformation or the evolution ofeconomic structure -- 2.5.1 A brief word on trade and employment changes -- 2.5.2 Concerns over the course of structural transformation -- 2.6 Human capital and investment capital -- 2.6.1 Education and structural transformation -- 2.7 Weak market integration -- 2.7.1 Infrastructure -- 2.8 Conclusion -- Bibliography -- 3 Growth, distribution, employment and poverty -- 3.1 Introduction -- 3.2 Growth, employment, inequality and poverty reduction: Theoretical insights and conceptual issues -- 3.3 What do country experiences teach us? -- 3.4 Supporting the growth-employment-poverty linkthrough economic and social policies -- 3.5 Conclusion -- Bibliography -- 4 Informality -- 4.1 Introduction -- 4.2 What is informality? -- 4.3 Measuring informality -- 4.3.1 Methodological issues -- 4.3.2 How big is informality? -- 4.4 Why does informality exist? -- 4.4.1 Informality as exclusion -- 4.4.2 Informality as choice -- 4.4.3 Two-tier informality.

4.5 What are the characteristics of informality? -- 4.5.1 The relevance of informality -- 4.5.2 What do informal workers do? -- 4.5.3 Firms and entrepreneurs in the informal sector -- 4.5.4 The link between the formal and the informal economy -- 4.6 What is the policy response to informality? -- 4.6.1 Policy response to informality as exclusion -- 4.6.2 Policy response to informality as choice -- 4.7 Conclusion -- Bibliography -- 5 Wages in developing countries -- 5.1 Introduction -- 5.2 The determination of wages -- 5.2.1 The neoclassical theory of wage determination -- 5.2.2 The empirical evidence -- 5.2.3 What determines labour productivity? -- 5.2.4 Economic development and wages with unlimited supplies oflabour -- 5.2.5 Imperfect competition and the role of labour institutions -- 5.2.6 The macroeconomic perspective -- 5.3 The distribution of wages -- 5.3.1 Characteristics of workers - men and women -- 5.3.2 Employer and industry characteristics -- 5.3.3 Labour market regulations: The example of minimum wages -- 5.3.4 The role of globalization -- 5.4 Conclusion -- Bibliography -- 6 Labour migration and development: A critical review of acontroversial debate -- 6.1 Introduction -- 6.1.1 Labour migration trends and characteristics -- 6.2 The determinants of labour migration -- 6.2.1 Theoretical underpinning -- 6.2.2 Empirical evidence -- 6.3 The impact of labour migration on the homeeconomy -- 6.3.1 Theory on the development impact of labour migration onsending economies -- 6.3.2 Empirical evidence on the development impact of labourmigration on sending economies -- 6.4 The impact of labour migration on the host economy -- 6.4.1 Theory on the consequences of labour migration in receivingeconomies -- 6.4.2 Empirical evidence on the consequences of labour migration in receiving economies -- 6.5 Conclusion and policy discussion -- Bibliography.

7 Education and human capital -- 7.1 Introduction -- 7.2 Human capital -- 7.3 Education and the labour market -- 7.4 Education and growth -- 7.5 Education policies -- 7.6 Conclusion -- Bibliography -- 8 Labour market institutions -- 8.1 Introduction -- 8.2 Employment protection legislation -- 8.2.1 What is employment protection legislation? -- 8.2.2 Measures and cross-country comparisons -- 8.2.3 Theoretical background -- 8.2.4 Empirical evidence -- 8.2.5 Concluding remarks -- 8.3 Minimum wages -- 8.3.1 Minimum wage characteristics -- 8.3.2 Cross-country comparisons -- 8.3.3 Theoretical background -- 8.3.4 Empirical evidence -- 8.3.5 Concluding remarks -- 8.4 Unemployment benefits -- 8.4.1 Characterizing unemployment protection systems -- 8.4.2 Theoretical background -- 8.4.3 Empirical evidence -- 8.4.4 Concluding remarks -- Bibliography -- 9 Labour market policiesfor development -- 9.1 Introduction -- 9.2 What are labour market policies and why use them? -- 9.3 Theoretical and policy arguments for theutilization of labour market policies -- 9.4 Labour market policies around the world -- 9.5 Challenges to implementing labour market policies in developing countries -- 9.6 Evidence from the global financial crisis of 2007-09 -- 9.7 Do labour market policies work? Findings fromthe impact evaluation literature -- 9.8 Empirical findings -- 9.9 Conclusion -- Bibliography -- 10 Labour market information and analysis systems -- 10.1 Introduction -- 10.2 Conceptualization of LMIA systems -- 10.2.1 Functions, components and levels -- 10.2.2 Country examples -- 10.2.3 Lessons from country examples -- 10.3 Indicators -- 10.3.1 Sets of labour market indicators -- 10.3.2 MDG employment indicators as a framework for labourmarket analysis -- 10.3.3 Employment targets and projections -- 10.4 LMIA system development.

10.4.1 Information, capacity and institutional assessment -- 10.4.2 Practical considerations -- Bibliography -- List of tables -- Table 2.1 "Dual economy": A "traditional" and a "modern" economy -- Table 2.2 Definitions of status in employment -- Table 3.1 Relationship between GDP, employment, productivity growth and povertyreduction, 1980-2008 -- Table 4.1 Informal employment and informal sector conceptual framework -- Table 4.2 Africa: Persons in informal employment and share of total employment(percentages) -- Table 4.3 South and East Asia: Persons in informal employment and share of totalemployment (percentages) -- Table 4.4 Latin America: Persons in informal employment and share of total employment(percentages) -- Table 5.1 International comparison of hourly direct pay in manufacturing, 2010 (US dollars) -- Table 6.1 Potential supply of migrant labour by region, 2005-50 (million individuals) -- Table 6.2 Potential demand for migrant labour by region, 2005-50 (million individuals) -- Table 8.1 Strictness of employment protection, 2008 (OECD employment protectionlegislation index) -- Table 8.2 The effects of employment protection on the labour market, empirical results -- Table 8.3 Effects of a 10 per cent increase in minimum wage on wage and employment,selected developing countries -- Table 9.1 Constraints to implementing labour market policies in developing countries -- Table 9.2 Coverage of selected ALMPs as a response to the global financial crisis,2008-10 -- Table 9.3 Key findings on the effectiveness of labour market policies -- List of figures -- Figure 2.1 Shares of regions in world output noting the growth of developing Asia, 1973and 1998 (percentages) -- Figure 2.2 Population growth, 2000-10 (percentages) -- Figure 2.3 Share of US1.25 per day working poor (percentages).

Figure 2.4 Share of contributing family members in total employment of youths aged15-24 (percentages) -- Figure 2.5 Share of employees in total employment and level of development, 2000-08(percentages) -- Figure 2.6 Relation between change in shares of agriculture in employment andvulnerability, 2009 -- Figure 2.7 Economic weight of the services sector and economic development -- Figure 2.8 Relation between educational attainment and share of agriculture in theeconomy (percentages) -- Figure 3.1 The poverty-growth-inequality triangle -- Figure 3.2 Virtuous circle of links among growth, employment and poverty reduction -- Figure 5.1 Productivity, labour demand and wages -- Figure 5.2 Labour productivity and average wage in 108 countries, 2009 or latestavailable year (2005 PPP) -- Figure 5.3 Adjusted wage share in advanced countries, Germany, Japan and theUnited States, 1970-2010 -- Figure 5.4 Adjusted wage share in developing and emerging economies, 1970-2006 -- Figure 5.5 Productivity, labour demand and wages in a country with surplus labour -- Figure 5.6 The skewed distribution of earnings -- Figure 6.1 Trends in total international migration, 1990-2010 (number of migrants, inmillions) -- Figure 6.2 Estimated number of international migrants by world region, 2010 -- Figure 6.3 Top ten destination countries, 2010 -- Figure 6.4 Top ten emigration countries, 2010 -- Figure 6.5 Emigration rate of tertiary educated by income level of countries, 1990 and2000 (percentages) -- Figure 6.6 Trends in the population, urban areas, 1950-2030 (percentages) -- Figure 7.1 Secondary enrolment in the developing world, 2009 (percentages) -- Figure 7.2 Secondary education completion, 2010 (percentages) -- Figure 7.3 Evolution of wage differentials in Brazil, 1981-2009 (percentages) -- Figure 7.4 Evolution of relative labour supply in Brazil, 1981-2009 (percentages).

Figure 7.5 PISA 2009, Share below level 1 (percentages).