Labour market developments in developing countries

This paper provides a broad description of labour market developments in selected LDCs, relying on several direct and indirect indicators, and then presents a rudimentary quantitative analysis of the determinants of labour demand. The focus is then turned more specifically on Taiwan and South Korea (for which data are more readily available), with a view to (i) evaluating the role of labour markets and employee wage behaviour in supporting a rapid and export-oriented growth process and to (ii) highlighting some major differences between the two countries, especially with respect to employee wage behaviour.