Abstract
This article focuses on the growth of non-standard employment arrangements in those segments of the labour market in developing countries that were previously the locus of ‘standard’ jobs. While informality is still a significant concern in developing countries, the increase in non-standard employment has compounded problems for workers and the labour market, adding to the already heightened levels of insecurity. In addition, by weakening the employment relationship, enterprises have less of an incentive to invest in the training of their workers or in productivity-enhancing technology or organizational improvements, potentially undermining economic development. Never the less, these issues can be addressed through regulations that lessen differences in contractual arrangements, as well as by restricting the use of non-standard employment. Governments should consider instituting and enforcing these measures for the benefit of workers, but also for firms, and for economic development in general.
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