The government is rightly concerned with employment generation to make growth inclusive. The use of the open unemployment rate to measure its success, however, is misplaced. In a developing country with a large informal sector and in the absence of unemployment insurance, open unemployment is...

This article focuses on the growth-employment relationship and the determinants of labour force participation rate. In the time-series framework, employment is seen to have a greater impact on GDP rather than vice versa. This is quite consistent with the literature that employment contracts can...