Urbanization, Labor Markets, and Economic Growth in Asia

Abstract

Rapid urbanization in Asia has transformed labor markets and contributed to economic growth, yet it also presents challenges such as income disparity and informal employment. This paper analyzes urbanization patterns in China, India, and Vietnam, using labor market and GDP data over 30 years. The study finds that urbanization promotes productivity and economic diversification, but without adequate labor regulations, social services, and skill development, it can exacerbate inequality and informal employment. The findings emphasize the need for integrated urban planning and economic policies to harness urbanization as a driver of sustainable growth.