Abstract

UNTIL recently, the notion that economic growth in the less developed countries (LDCs) would also generate adequate expansion in employment had been widely accepted by students of economic development. It had been generally assumed that rapid economic growth, spearheaded by a dynamic industrial sector, would ultimately absorb the large and persistent flows of new workers into the labour market. Problems of unemployment and underemployment would be solved, therefore, through vigorous industrialization and through the more general and systematic rise in per capita income. In recent years the employment problem has come to be recognized as more serious, and the link between output growth and employment expan sion as more complex than had been presumed. In the words of one observer:

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