November 1999 - Unemployment in Sri Lanka is largely voluntary. The underlying problem is not a shortage of jobs but the artificial gap between good jobs and bad ones. Policy efforts should be aimed at reducing the gap between good and bad jobs by making product markets more competitive,...

Unemployment in Sri Lanka is largely voluntary. The underlying problem is not a shortage of jobs but the artificial gap between good jobs and bad ones. Policy efforts should be aimed at reducing the gap between good and bad jobs by making product markets more competitive, reducing excessive job...

High unemployment in Sri Lanka has been attributed to unrealistic expectations, to queuing for public sector jobs, and to stringent job security regulations. However, the empirical evidence supporting these explanations is weak. This paper analyzes individual records from the 1995 Labor Force...