Discussion paper
DP17548 Employer Power and Employment in Developing Countries
The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labor markets. This assumption matters for analysis
and policy prescription. There is growing evidence that the competitive labor markets assumption is not valid for developing countries. Our objective in this paper is to review this evidence,
to present theoretical and policy perspectives which follow from it, and to highlight areas for further research.
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