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"While economic growth may potentially raise living standards across the board in developing countries, the policies adopted at the macro level to promote growth are clearly not distribution-neutral. Because the urgency to raise living standards is greatest at the bottom of the income distribution in such countries, the need to understand the links between macroeconomic policies and poverty reduction looms large on the development research agenda. Unfortunately, because this issue is at the intersection of micro- and macroeconomics, it has tended to fall between the stools of researchers, despite the attention that the issue has recently received in policy circles.
"This volume represents an impressive start in redressing this situation. The papers contained here develop innovative analytical tools that are applied to investigate the employment and distributional effects of standard macroeconomic policies in the context of specific developing countries, showing the way to future progress in this important area of research. It is bound to become a standard reference for future research on the macroeconomics of unemployment and poverty reduction in developing countries."
Peter Montiel, Professor of Economics, Williams College
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