Labor Market Challenges and Policy Reforms in the Kyrgyz Republic: Kyrgyz Republic

This SIP reviews the labor market constraints to growth and development in the Kyrgyz Republic, including gender-specific constraints. It is motivated by the high annual population growth rate of 2 percent, which implies 50,000 new labor market entrants per year. The review canvasses broadly recent additions to the relevant economic literature and databases. The SIP finds that significant informality, low worker productivity, a skills mismatch, and the gender gap in labor participation undermine improvements in, and the efficient allocation of, the labor force. The paper suggests a sharper focus of more flexible labor market policies, a more cost-effective education system, and better social safety nets.