This paper provides a selective review of evidence from labor markets in low-incomecountries. The aim is to synthesize this literature to consolidate what is known about the key drivers of worker outcomes (including those of micro-entrepreneurs), …rm behavior, and the interaction between …rms and workers. We draw on cross-country and within-country evidence utilizing a wide range of research designs, as well as novel evidence from ongoing studies. On …rms, we discuss the …rm size distribution, constraints to …rm expansion, and in- formality. On workers we discuss the role of training, non-cognitive skills and the worker-…rm matching process. Throughout, we place emphasize on understanding the role of institutions and the state in determining these outcomes.

Authors: Imran Rasul