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World Development Report 2013 The World Bank 3/13/2012
Moving jobs to center stage 1
Labor Market Core Course, May 9, 2013
2 Main messages World Development Report 2013 The World Bank
3 The jobs challenge World Development Report 2013 The World Bank
Jobs challenges are huge
4 The jobs challenge World Development Report 2013 The World Bank
A job does not always come with a wage
Source: WDR 2013 team based on ILO data Source: WDR 2013 team
South Asia, Africa, and East Asia and the Pacific face significant youth bulges
Alarming levels of youth idleness and unemployment
5 The jobs challenge World Development Report 2013 The World Bank
6 Part I World Development Report 2013 The World Bank
I. Jobs are
transformational
7 The jobs challenge World Development Report 2013 The World Bank
What is a job?
8 Jobs are transformational World Development Report 2013 The World Bank
Jobs drive development
Source: Inchauste and others 2012 for the WDR 2013
Jobs take households out of poverty
9 Jobs and living standards
Job creation and destruction happen everywhere
10 Jobs and productivity
World Development Report 2013 The World Bank
Source: WDR 2013 team based on Bartelsman, Haltiwanger, and Scarpetta (2009), and Shiferaw and Bedi (2010).
The employment share of microenterprises is greater in developing countries
11 Jobs and productivity
Source: Wietzke and McLeod 2012 for the WDR 2013
Jobs are correlated with civic engagement
12 Jobs and social cohesion
Active membership and lack of a Job Active membership and motivating Job
13 Part II World Development Report 2013 The World Bank
II. What are
good jobs for development?
14 Valuing jobs
Individual and social valuations of jobs often differ
15 Valuing jobs World Development Report 2013 The World Bank
Some jobs do more for development
16
Some jobs do more for living standards
• Earnings of others. Discrimination and uneven bargaining power can lead to distortions.
• Household allocations.
Female employment can change bargaining
power, increase investments in children.
• Poverty reduction. Jobs that reduce poverty can benefit society as well as individuals.
16 Jobs and social cohesion
17
Some jobs do more for productivity
Agglomeration economies. Learning and imitation happens in cities, through knowledge spillovers, exchange of ideas and better matching; and in industrial clusters, through specialization, sharing of common services and coordination.
Global integration. Knowledge spillovers occur through international trade and participation in global value chains.
Environmental impacts. Some jobs impose a greater toll on natural resources.
17 Jobs and social cohesion
18
Some jobs do more for social cohesion
Social identity. Jobs can affect the well-being of others by influencing values and behavior.
Networks. Jobs connect people. They may contribute to tolerance by increasing direct knowledge between people of different social and ethnic backgrounds.
Fairness. A perceived absence of fairness in access to job opportunities, beyond one’s own job, can undermine having a stake in society and create tensions.
18 Jobs and social cohesion
A typology of jobs challenges
19 Diverse jobs agendas
Agendas connected by the migration of workers
20 Connected jobs agendas World Development Report 2013 The World Bank
Source: WDR 2013 team based on Özden and others (2011).
Agendas connected by the migration of jobs
Manufacturing
jobs have migrated
– are services next?
21 Connected jobs agendas World Development Report 2013 The World Bank
Source: WDR 2013 team based on data from the United Nations Industrial Development Organization.
Where will
China’s jobs in light
manufacturing go as
labor costs increase?
22 World Development Report 2013 The World Bank
III. Policies through the
jobs lens
Part III
Policies through the jobs lens 23 World Development Report 2013 The World Bank
Three distinct layers of policies are needed
24
Fundamentals
24 Jobs and social cohesion
Policies through the jobs lens 25 World Development Report 2013 The World Bank
Three distinct layers of policies are needed
Labor Policies
• Regulation and minimum wages: Within a reasonable range labor market regulations have little impact on employment or productivity.
• Voice: new forms of voice are needed for those not in formal labor market. Productivity externalities happen in cities and clusters, implying that spatial negotiation can enhance coordination
• ALMPS: can have positive impact but can only be part of the solution
World Development Report 2013 The World Bank March 15 2012
26 Labor policies revisited
Active Labor Market Programs – Training alone often has limited success
World Development Report 2013 The World Bank March 15 2012
27 Labor policies revisited
Combined work and training increases the success rates of programs
Policies through the jobs lens 28 World Development Report 2013 The World Bank
Three distinct layers of policies are needed
Beyond labor policies 29 World Development Report 2013 The World Bank
Global partnerships for jobs
Rights and standards: pressure goes only so far
Further liberalizing investments, but managing the tradeoffs
Migration policies: toward bilateral agreements
Jobs are center stage, but where are the numbers?
The difficult questions 30 World Development Report 2013 The World Bank
Key policy questions addressed through the Report
But the 1st question is: what is a job? And the answer is not trivial
2 • Growth strategies or jobs strategies?
3 • Can entrepreneurship be fostered?
4 • Can policies contribute to social cohesion?
5 • Skills or jobs – what comes first?
6
• A targeted investment climate?
7 • Competing for jobs?
8 • Protecting workers or protecting jobs?
9 • How can job reallocation be accelerated?
31 Follow up World Development Report 2013 The World Bank
To continue the dialogue on what it takes to create good jobs for development join the
interactive Jobs Knowledge Platform at:
www.jobsknowledge.org
To download the World Development Report 2013: Jobs, its background papers, databases
and explanatory videos, visit:
http://www.worldbank.org/wdr2013
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