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What do empirical studies say about economic growth and job creation in developing countries?

Research reports

Written by Yurendra Basnett

​How economies generate productive jobs and how labour is absorbed are important issues for development. This report reviews  evidence on the employment impact of economic growth and draws out evidence and lessons from the literature on how growth is associated with employment at a macro, sector and industry level.

The review of empirical literature in this paper highlighted that economic growth is positively associated with job creation. The level and quality of impact is determined by country context, factors that transmit the impact of growth, as well as complementary policies.

Section 2 briefly discusses the methodology used to review the literature on economic growth and job creation. Section 3 provides an overview of the findings, and section 4 provides a discussion of disaggregated impact. Section 5 discusses the impact of macroeconomic policies on employment.

  • What do empirical studies say about economic growth and job creation in developing countries?

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Yurendra Basnett and Ritwika Sen