Employment and unemployment in the Dominican Republic

The study concludes that the rate of open unemployment has hovered in the vicinity of 7%, rather than the 15-20% reported by a household survey dating from 1986. Further, earnings increase with age and/or education in both the formal and informal markets. Job seekers report relatively short periods of searching. The number of household servants appears to be declining, and their wages rising rapidly. There is considerable room for improving the survey instrument and the sampling methods. The questionnaire employed in the household survey is inadequately structured to provide a true definition of the employment status of the population of labor force age. As a result, a large number of individuals are mis- specified as part of the labor force and unemployed, when it is most likely that they do not form part of the labor force at all. The Central Bank, under whose auspices the survey was conducted, is aware of the inadequacy of the survey. Considerable support exists within the Dominican government for survey revision. (Author abstract)