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GLM|LIC Policy Brief No. 20

Modelling Labour Markets in LICs with Imperfect Data

A Complex Labour Market Segmentation Model Can Ensure Well-Targeted, Evidence-Based Policy Interventions for Low Income Countries in Africa

Labour Markets in Low-Income Countries
Modelling Labour Markets in LICs with Imperfect Data

There is no clear empirical appreciation of the most appropriate labour market segments both across and within lower income countries (LICs) in Africa. This study compares descriptive labour markets across three LICs: Kenya, Tanzania and Zambia, allowing the data to drive the design of the segmentation model. The study demonstrates the value of a more complex labour market model, which considers the full range of observable labour markets segments. It argues that a better understanding of these labour market segments is necessary to ensure well-targeted, evidence-based policy intervention.

GLM|LIC Policy Brief No. 20

Modelling Labour Markets in LICs with Imperfect Data

A Complex Labour Market Segmentation Model Can Ensure Well-Targeted, Evidence-Based Policy Interventions for Low Income Countries in Africa

  • Haroon Bhorat
  • Morné Oosthuizen
  • Matthew Sharp
  • Kezia Lilenstein
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Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

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