Unemployment and underemployment in the rural sectors of the less developed countries

THIS PAPER IS A COMPREHENSIVE OVERVIEW OF THE PROBLEMS OF UNEMPLOYMENT AND UNDEREMPLOYMENT IN LDCS, WITH A DESCRIPTION OF APPROACHES TO ALLEVIATE THIS SITUATION. THE LONG-TERM SOLUTION IS INCREASED JOB OPPORTUNITIES; HOWEVER, SHORT-TERM SOLUTIONS ARE NOT OBVIOUS. THE CAPACITY OF A COUNTRY"S AGRICULTURAL SECTOR TO ABSORB LABOR IS AFFECTED SUBSTANTIALLY BY LAND-HOLDING PATTERNS, LEVEL OF TECHNOLOGY EMPLOYED, PHYSICAL RESOURCES, MARKETS FOR AGRICULTURAL COMMODITIES, AND GOVERNMENT AGRICULTURAL POLICIES. EXISTING STUDIES SUGGEST THAT MOST FORMS OF MECHANIZATION TEND TO REDUCE ON-FARM EMPLOYMENT. HOWEVER, BETTER INFORMATION IS NEEDED CONCERNING THE LONG-TERM IMPACTS OF MECHANIZATION ON CROPPING PATTERNS, LAND-USE INTENSITY, TOTAL OUTPUT, AND NET EMPLOYMENT UNDER SPECIFIC SOCIAL, CULTURAL, AND ECONOMIC CONDITIONS. THE "GREEN REVOLUTION" TECHNOLOGY GENERALLY INCREASES LABOR REQUIREMENTS PER UNIT OF LAND. INSTITUTIONAL CONSTRAINTS ON INCREASED EMPLOYMENT INCLUDE FACTOR PRICE DISTORTIONS DUE PARTLY TO TAX AND/OR TRADE POLICIES THAT TEND TO "UNDERPRICE" CAPITAL AND SOME ASPECTS OF LABOR LEGISLATION THAT HAVE THE EFFECT OF "OVERPRICING" LABOR. SOME APPROACHES TO INCREASING RURAL EMPLOYMENT INCLUDE MORE INVESTMENT IN RURAL INFRASTRUCTURE, INVESTMENT IN LABOR-INTENSIVE RURAL PUBLIC WORKS PROGRAMS, INDUSTRIAL DECENTRALIZATION, AND PROMOTION OF COTTAGE INDUSTRIES.