ABSTRACT
Much of development economics is concerned with fostering economic growth, alleviating poverty, and improving the general standard of living of people in low- and middle-income countries. Employment and earnings from labor are central concerns because for most households, labor earnings represent the largest portion of total income, and poverty is often the result of insufficient access to adequate employment. As urban population projections make clear, the urban economies of many developing countries are facing an unprecedented challenge—to generate a sufficient number of new jobs at reasonable wages to absorb a growing and better-educated labor force. The purpose of this chapter is to examine several of the critical elements in the nature of urban labor supply and employment. Of course, no single chapter can do justice to the complexities of urban economic relations, and the attempt made here is far from comprehensive. From the great variety of issues associated with urban economies, we focus on a selected few that have the greatest demographic resonance.
