# **1 Introduction**

_Labor market outcomes are a critical determinant of household well-being during an economic crisis, especially in developing countries where labor is usually the main source of income._ Understanding how labor market outcomes changed for different groups during the most recent downturn is therefore an important first step in crafting appropriate and well-targeted policies to respond to future crises. This paper examines _which groups of workers in developing counties were most affected by labor market retrenchment during the great recession_ . The analysis sets aside other important dimensions affecting income and household well-being, such as changes in transfers, remittances and consumption patterns, and focuses only on changes in labor market outcomes.

_The vulnerability of different types of workers to economic downturns remains subject to debate, and targeted policies in response to the crisis were typically based on ad-hoc or institutional considerations._ Labor market assessments and anecdotal evidence typically emphasizes the vulnerability of young, unskilled, or female workers. Although it is widely accepted that youth suffered disproportionate increases in unemployment during the latest downturn, less is known about youths’ adjustment along other dimensions, and there is no similar consensus regarding the relative vulnerability of female and unskilled workers. Furthermore, conclusions are often inferred from past crises, data from advanced countries, or data from particular developing countries. Few studies have examined the impact of a recession on different types of workers across a wide range of developing countries, and this is the first to our knowledge that compares disparities in labor market outcomes across several potentially vulnerable groups.

_This study examines changes in labor market trends during the crisis for different types of workers, defined by their gender, age, education, and urban or rural residence._ Data are taken from 17 middleincome countries that field household surveys at least once per year. The outcomes measure aspects of individuals’ main labor market activities and job quality. In particular, the indicators capture labor market activity, as measured by the ratios of employment, unemployment, and non-participation to total population, and unemployment among the active labor force. Proxies for job quality include the share of the labor force employed in the agriculture sector, and importantly, wage employment. Changes in wages, hours worked, and earnings among workers are also presented when available. We focus on how labor market trends for each group changed during the crisis and how these changes affected their relative performance. For example, youth are almost always less likely to be employed than adults, but if the employment gap between youth and adults widened more rapidly after the crisis than before, we conclude that the crisis disproportionately affected youth employment.

_Our main findings are as follows: first, youth generally suffered the largest adverse impacts on employment, unemployment, and wage employment, particularly relative to older adults_ . Youth experienced greater percentage reductions in employment within each sector and status of 2