(Some) Developing countries have lower unemployment because people can’t afford not to work

Unemployment is lower in (some) developing countries than it is in richer nations because fewer people can afford not to work, according to the Economist. The magazine zones in on Asia, where unemployment rates are both low and “boringly stable,” largely because these countries do not offer the same jobless benefits as developed countries like the US. This discrepancy means that unemployment in developing countries is quite literally seen as a luxury that most cannot afford. “In poor countries, unemployment is paradoxically concentrated among the better off and better educated. They can afford to wait a bit for a job that matches their aspirations and qualifications. Their behavior may also explain unemployment’s curious stability.”