Unemployment and Poverty

Paper Summary:

This paper argues that linkages between unemployment rates and poverty rates in developing countries are quite a bit weaker than the linkages between unemployment and poverty found in developed nations. In other words, while economic recessions in the developed world usually see high unemployment rates operating in tandem with high poverty rates, developing nations may have low unemployment rates--usually a sign of economic growth and prosperity--but still have exceedingly high poverty rates despite the good news on the employment front.

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