This article uses a variation of the Solow model that were
developed by Alonso, Echevaria and Tran (2004) to explore the
interrelations between the labor market and the economic growth. It con be
proven that both analytically and empirically, income and capitol per
worker in the development-store (ASEAN Countries) depend positively on
flexibility of the labor market that the development state unemployment role depends positively on the rare of population growth and the
productivity growth rate and negatively on the savings rate and flexibility
of the labor market, and, finally, that labor market flexibility affects
convergence toward developing countries. The paper also discusses the
economic implications of these result sigma convergence.
