Publication Date



[Excerpt] Consistent with the mainstream view of economic growth as a factor promoting long-term economic mobility, we hypothesize that those economies in which economic growth has been most rapid are precisely the ones that have achieved the greatest progress toward poverty reduction through improved labor market conditions, especially in private employment. We also hypothesize that the positive relationship running from economic growth through the labor market to poverty reduction continued to hold in the 1990s in essentially the same way as in earlier years when globalization was less intense. Both hypotheses are confirmed by our data. Our results therefore cast doubt on two claims: that workers are being left out of economic growth today, and that workers participated in economic growth before but are not able to do so now.


Suggested Citation

Fields, G. S. & Bagg, W. S. (2003). Long-term economic mobility and the private sector in developing countries: New evidence [Electronic version]. In G. S. Fields & G. Pfeffermann (Eds.) Pathways out of poverty: Private firms and economic mobility in developing countries (pp. 35-64). Norwell, MA: Kluwer Academic Publishers.

Required Publisher Statement

© Springer. Reprinted with permission. All rights reserved.