This paper proposes an overlapping generations multi‐sector model of the labor market for developing countries with three heterogeneities – heterogeneity within self‐employment, heterogeneity in ability, and heterogeneity in age. We revisit an iconic paradox in a class of multi‐sector...

Public works programs in developing countries can reduce poverty in the long term and help lowskilled workers cope with economic shocks in the short term. But success depends on a scheme's design and implementation. Key design factors are: properly identifying the target population; selecting...