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Labor Institutions and Their Impact on Shadow Economies in Europe

Fialova, Kamila; Schneider, Ondrej
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
76.29%
This paper analyzes the role of labor market institutions in explaining the development of shadow economies in European countries. The analysis uses several alternative measures of the shadow sector, and examines the effects of labor institutions on the shadow sector in two specific regions: new and old European Union member countries, as their respective shadow sectors exhibited a different development in the past decade. Although the share of the shadow economy in gross domestic product averaged 27.5 percent in the new member countries in 1999-2007, the respective share in the old member states stood at 17.9 percent. The paper estimates the effects of labor market institutions on two sets of shadow economy indicators -- shadow production and shadow employment. Comparing alternative measures of the shadow sector allows a more granulated analysis of labor market institution effects. The results indicate that the one institution that unambiguously increases shadow economy production and employment is the strictness of employment protection legislation. Other labor market institutions -- active and passive labor market policies...

Linking Education Policy to Labor Market Outcomes

Fasih, Tazeen
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
76.32%
Education plays a central role in preparing individuals to enter the labor force, as well as equipping them with the skills to engage in lifelong learning experiences. The objective of this study is to review what is known about the role of education in improving labor market outcomes, with a particular focus on policy considerations for developing countries. The report presents findings from current literature on the topic, which offers new ways of looking at the returns to education, together with evidence from four original data analysis and background studies of education and labor issues in Ghana and Pakistan. Country studies on Ghana and Pakistan are used to substantiate findings of the literature and illustrate the heterogeneity of education labor market linkages across regions. These countries were chosen because they are representative of two of the poorest regions of the world and because their inclusion in the analysis complements ongoing World Bank work on education and labor market issues in those countries. This report offers two types of findings: those relevant to the content of educational policies and those relevant to the framework for educational policy making.

Labor Market Policy in Developing Countries : A Selective Review of the Literature and Needs for the Future

Fields, Gary S.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
106.36%
This paper presents a selective overview of the literature on modeling labor market policies in developing countries. It considers welfare economics, theoretical models, and empirical evidence to highlight the three general features needed in future research on labor market policy in developing countries. The author identifies desirable research components (welfare economics, theoretical modeling, and empirical modeling) and pitfalls in the literature (inappropriate use of productivity, reliance on wrong kinds of empirical studies, lack of cost-benefit analysis, attention to only a subset of the goods and bads, and fallacy of composition). The paper concludes with suggested topics and methods for future research. The author states that sound labor market policy requires sound labor market models. The paper makes a case for developing policy based on explicit evaluation criteria, specific theoretical models, and comprehensive empirical evidence.

Armenia - Labor Market Dynamics : Volume 1. Overview

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Relevância na Pesquisa
76.33%
This study is intended to help Armenian policymakers better understand the main factors behind modest labor market outcomes and to identify policy options to create more and better jobs. The report is based on data from administrative statistics, labor force surveys, and household surveys. The objective of the study is to determine the main factors behind poor labor market outcomes in Armenia: high unemployment of long duration despite rapid economic growth. To do so, it will assess, first, the key characteristics of the demand for labor. These include (a) the impact of macroeconomic policies on job growth; (b) wage flexibility and unit labor costs; (c) cost-of-doing-business factors, including costs, risks, and barriers to competition faced by firms; and (d) employment promotion legislation and labor market institutions. Recommendations are made on policies that can promote an effective and sustainable increased demand for labor; second, the key characteristics of the supply of labor, including the impact of long-term demographic developments and labor migration...

Labor Market Adjustment, Reform and Productivity in Colombia : What are the Factors that Matter? Volume 1, Issues and Policy Brief

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
76.29%
This report carries out a detailed evaluation of the 2002 labor reform in Colombia, and in doing so, it also assesses the performance of the Colombian urban labor market and identifies the main policy challenges faced in this area. The report has three broad goals: First, to provide additional evidence to inform the intense debate taking place in the country around labor market issues, especially the reform. Second, to shed light on the key factors preventing a swift recuperation of the labor market. Third, to offer sensible policy alternatives that complement the step taken with the labor reform and address those key factors. The analyses are carried out for the key labor market outcomes: employment, unemployment, formality and wages, as well as productivity. Through the analysis of these variables the report tries to enhance the understanding of issues such as informality, labor market rigidities, job creation, protection against shocks and private sector performance. By and large, these determine whether people can find gainful employment, be adequately protected against shocks and whether firms are profitable so that, on the one hand, investment and technology adoption take place and, on the other, employment and wages grow, which are the truly important concerns for policy makers. The report illustrates key problems faced by Colombia: slow growth reflecting poor productivity performance...

The Labor Market Policy Reform Agenda in MENA

World Bank
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
86.32%
Despite positive economic growth in recent years, basic labor market outcomes in the Middle East and North Africa (MENA) remained stagnant and have only improved slightly in the past 10 years. A number of recent and ongoing analyses have stressed the pressing need for many economies in the region to identify new and sustainable sources of growth, create more and higher value-added employment, and absorb the fast growing number of university graduates into the labor market. Structural transformation towards higher productivity and the creation of qualified jobs requires far reaching reforms in multiple sectors, including innovation, science and technology; education quality; labor market flexibility and mobility; and entrepreneurial incentives allowing investors to innovate, invest, and create higher value added jobs. Within this broad context, this note focuses on labor market policies and the agenda for labor market reform in MENA.

Active Labor Market Programs for Youth : A Framework to Guide Youth Employment Interventions

Cunningham, Wendy; Sanchez-Puerta, Maria Laura; Wuermli, Alice
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
96.16%
Youth are three times more likely to be unemployed than adults, even in economies with strong economic growth. This note is a tool to provide policymakers and youth-serving organizations with a framework to better diagnose short- to medium-run constraints facing the stock of unemployed youth and to design evidence based youth employment interventions. The note only addresses youth employment; strategies to affect wages, productivity, underemployment, or job quality are not directly discussed. This note presents youth-oriented Active Labor Market Programs (ALMPs) that conform to one of two criteria. Each intervention either has been shown to have predominately positive impact, as measured by rigorous impact evaluations, or has weaker evidence of impact-rigorous evaluations with mixed evidence of impact or strong positive monitoring data-and is theoretically sound. Cost-effectiveness information is presented when available. The note focuses on programs that are appropriate to address constraints faced by youth from disadvantaged backgrounds.

Impact Evaluation : Techniques for Evaluating Active Labor Market Programs

Dar, Amit
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
96%
Over the past 40 years, "active" labor market programs (ALMPs) have emerged as an important employment policy tool. Their objective is primarily economic - to increase the probability that the unemployed will find jobs or that the underemployed will increase their productivity and earnings. ALMPs include job search assistance, training and retraining, and job creation programs (public works, micro-enterprise development, and wage subsidies). With economic reform, increasing liberalization of markets and growing concerns about the problems of unemployment, ALMPs have increasingly become an attractive option for policymakers. Expenditure on these programs has, however, not increased substantially over the 1990s, remaining fairly constant at around 0.7% of GDP. This reflects to some extent the ambivalence of policymakers about the effectiveness of ALMPs. A frequently asked question is, "Are these programs effective?" This note will focus on impact evaluations of ALMPs. It will discuss the objectives and importance of rigorous evaluations...

Labor Markets and School-to-Work Transition in Egypt : Diagnostics, Constraints, and Policy Framework

Angel-Urdinola, Diego; Semlali, Amina
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
76.36%
Analysis in this policy note indicates a rapid deterioration in employment opportunities for young individuals transitioning from school to work in Egypt. Despite substantial improvements in labor market outcomes in recent years (in raising employment and participation and in lowering unemployment), unemployment rates in Egypt remain exceedingly high among youth entering the labor market for the first time. A slow school-to-work transition remains the main reason behind high unemployment rates. Young entrants to the labor market have become more educated than ever before: the share of the working-age-population with university education in Egypt has increased significantly between the years 1998 and 2006 (from 14% to 19% among men and from 9% to 14% among women). However, youth are unable to capitalize the time and resources invested in their education as the labor market is not providing enough good-quality jobs for them. To cope with scarce formal jobs, young-educated workers are opting to work in the informal sector and/or withdraw from the labor force...

Labor Market Regulations : What Do We Know about Their Impacts in Developing Countries?

Betcherman, Gordon
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
76.3%
Labor market regulation is a high-profile, and often contentious, area of public policy. Although these regulations have been studied most extensively in developed countries, there is a growing body of literature on their effects in developing countries. This paper reviews that literature and focuses on the impacts of two important types of labor market regulation, minimum wages and employment protection legislation (EPL), on employment, earnings, and productivity. Strong and opposing views exist regarding the costs and benefits of these regulations, but the results of this review suggest that their impacts are generally smaller than the heat of the debates would suggest. Efficiency effects are found sometimes, but not always, and the effects can be in either direction and are usually modest. The distributional impacts of both minimum wage and employment protection legislation are clearer, with two effects predominating: an equalizing effect among covered workers, but with groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. Although the overall conclusion is one of modest effects in most cases...

Sticky Feet : How Labor Market Frictions Shape the Impact of International Trade on Jobs and Wages

Hollweg, Claire H.; Lederman, Daniel; Rojas, Diego; Ruppert Bulmer, Elizabeth
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
86.3%
This report analyzes the paths by which developing country labor markets adjust to permanent trade-related shocks. Trade shocks can bring about reallocation of labor between industries, but the presence of labor mobility costs implies economy-wide losses because they extend the period of economic adjustment. This report focuses primarily on the adjustment costs faced by workers after a trade shock, because of magnitude and welfare implications and policy relevance. From a policy viewpoint, understanding the relative magnitudes of labor mobility and adjustment costs can help policymakers design trade policies that are consistent with employment objectives, can be complemented by labor policies, or support programs to facilitate labor transitions, or both. To complement and validate the analysis based on structural choice models, the study designed a distinct empirical approach using reduced-form econometric estimation strategies. This approach examines the impact of structural reforms and worker displacement on labor market outcomes. This makes it possible to estimate the time required to adjust to a trade-related shock...

Portraits of Labor Market Exclusion

Sundaram, Ramya; Hoerning, Ulrich; De Andrade Falcao, Natasha; Millan, Natalia; Tokman, Carla; Zini, Michele
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
76.31%
The financial crisis that hit the global market in the middle of 2008 gave way to the sharpest contraction of the European economies since the Great Depression. In 2009 the economic output in the countries of the European Union shrank 4.5 percent, the largest reduction in GDP since its creation. Since then, the economies have slowly recovered, but unemployment has continued to rise, reaching 11 percent in 2013, up from 7.1 percent in 2008. The economy of the European Union shrank 4.5 percent, the largest reduction in its GDP since the Union s creation. Furthermore, for the European Union as a whole, long-term unemployment among 15- to 64-year-olds has increased from 37.2 percent in 2008 to 47.5 percent of total unemployment in 2013. In several countries more than half of those unemployed are long-term unemployed, that is, they have been looking for jobs for more than 12 months. In Greece and Bulgaria the share of long-term unemployed in 2013 was 67.5 percent and 57.3 percent, respectively. Youth unemployment, on the other hand...

Labor Policy to Promote Good Jobs in Tunisia : Revisiting Labor Regulation, Social Security, and Active Labor Market Programs

Angel-Urdinola, Diego F.; Nucifora, Antonio; Robalino, David
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
86.36%
Tunisians are striving for the opportunity to realize their potential and aspirations in a country that is rich in both human and physical capital, but whose recent economic growth has failed to create enough opportunities in the form of good and productive jobs. This report highlights the main barriers that hinder the Tunisian labor market from providing income, protection, and prosperity to its citizens and proposes a set of labor policies that could facilitate the creation of better, more inclusive, and more productive jobs. The weak economic performance and insufficient and low-quality job creation in Tunisia is primarily the result of an economic environment permeated by distortions, barriers to competition, and excessive red tape, including in the labor market. This has resulted in the creation of a insufficient number of jobs, especially in the formal sector. To change this situation, policy makers need to address five strategic directives that can promote long-term inclusive growth and formality: foster competition; realign incentives...

Labor Market Regulations and Outcomes in Sweden

Ulku, Hulya; Muzi, Silvia
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
76.3%
This paper analyzes recent trends in Swedens labor market regulations in relation to comparator economies and examines the relationship between labor market regulations and outcomes. The paper finds that the Swedish labor market responded more rapidly to the recent global financial crisis than the majority of the European Union economies, which helped Sweden to recover quickly. Swedens hiring regulations are more flexible than those of many comparator economies, however, fixed-term contracts of short duration might have adverse consequences for the economy. In addition, Swedens regulations on work during the weekly holidays and mandatory paid annual leave are stricter than those of the majority of comparator economies. Moreover, among the economies of the Organisation for Economic Co-operation and Development, Sweden has one of the largest differences in employment protection between permanent and temporary employees, which could lead to a segmented labor market, where insiders enjoy high job security and outsiders are largely marginalized. This could be cause for concern...

Effectiveness of Interventions Aimed atImproving Women’s Employability and Quality of Work : A Critical Review

Todd, Petra E.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
76.33%
This paper examines the effectiveness of a variety of policy interventions that have been tried in developing and transition economies with the goal of improving women's employability and quality of work. The programs include active labor market programs, education and training programs, programs that facilitate work (such as childcare subsidies, parental leave programs and land titling programs), microfinance programs, entrepreneurship and leadership programs, and conditional cash transfer programs. Some of these policy interventions were undertaken to increase employment, some to increase female employment, and some for other reasons. All of these programs have been subjected to impact evaluations of different kinds and some also to rigorous cost-benefit analyses. Many were found to be effective in increasing women's quantity of work as measured by increased rates of labor market participation and number of hours worked. In some cases, the programs also increased women's quality of work, for example, by increasing the capacity for women to work in the formal rather than the informal sector where wages are higher and where women are more likely to have access to health...

The Impact of Vocational Training for the Unemployed : Experimental Evidence from Turkey

Hirshleifer, Sarojini; McKenzie, David; Almeida, Rita; Ridao-Cano, Cristobal
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
86.31%
A randomized experiment is used to evaluate a large-scale, active labor market policy: Turkey's vocational training programs for the unemployed. A detailed follow-up survey of a large sample with low attrition enables precise estimation of treatment impacts and their heterogeneity. The average impact of training on employment is positive, but close to zero and statistically insignificant, which is much lower than either program officials or applicants expected. Over the first year after training, the paper finds that training had statistically significant effects on the quality of employment and that the positive impacts are stronger when training is offered by private providers. However, longer-term administrative data show that after three years these effects have also dissipated.

Tunisia - Development Policy Review : Towards Innovation-driven Growth; Tunisienne - Revue des politiquesde developpement : vers une croissance tireepar l'innovation

World Bank
Fonte: World Bank Publicador: World Bank
Tipo: Economic & Sector Work :: Development Policy Review (DPR)
ENGLISH
Relevância na Pesquisa
76.33%
Tunisia must move from a low value-added and low cost economy to a higher value-added, knowledge intensive economy in order to significantly reduce unemployment, its overriding challenge. This Development Policy Review (DPR) provides a discussion of the key issues and challenges that are involved in achieving this goal. Towards this end, it discusses trade integration, innovation policies and enabling environment reforms (macro stability, economic regulation and governance, financial sector and labor market reforms and capital account opening) that could facilitate the structural transformation of the economy. The DPR is organized as follows: chapter one reviews growth and employment outcomes and challenges; chapter two discusses the rationale for increasing the pace of structural transformation of the economy in order to boost growth and reduce unemployment; chapter three examines the strengths and weaknesses of Tunisia's innovation system and strategies and proposes reform options in light of the international experience; chapter four discusses key aspects of Tunisia's global integration that could further contribute to innovation and productivity growth; chapters five discusses the key improvement in the enabling environment needed to support innovation and productivity growth (economic regulation...

Promoting Labor Market Participation and Social Inclusion in Europe and Central Asia's Poorest Countries

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Report; Economic & Sector Work; Economic & Sector Work :: Other Social Protection Study
ENGLISH; EN_US
Relevância na Pesquisa
76.31%
This report, funded by the Trust Fund for Environmentally and Socially Sustainable Development (TFESSD), seeks to identify labor market inequalities in the ten countries outlined above, to relate these inequalities to other forms of social exclusion, and to propose areas for policy action aimed at boosting labor market participation. The remainder of the report is structured as follows. Chapter two describes the role that jobs play in fostering good living standards, productivity and social cohesion, and contextualizes the discussion on jobs and participation in the ten countries. Chapter three zooms in, highlighting inequalities in labor force participation across demographic groups. Chapter four shifts the focus to the factors explaining unequal labor force participation across groups, and discusses a policy agenda for these ten countries, drawing on experiences from the rest of the world. Chapter five concludes.

'Green' Growth, 'Green' Jobs and Labor Markets

Bowen, Alex
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
76.3%
The term 'green jobs' can refer to employment in a narrowly defined set of industries providing environmental services. But it is more useful for the policy-maker to focus on the broader issue of the employment consequences of policies to correct environmental externalities such as anthropogenic climate change. Most of the literature focuses on direct employment created, with more cursory treatment of indirect and induced job creation, especially that arising from macroeconomic effects of policies. The potential adverse impacts of green growth policies on labor productivity and the costs of employment tend to be overlooked. More attention also needs to be paid in this literature to how labor markets work in different types of economy. There may be wedges between the shadow wage and the actual wage, particularly in developing countries with segmented labor markets and after adverse aggregate demand shocks, warranting a bigger and longer-lasting boost to green projects with high labor content. In these circumstances...

The active turn in Danish welfare policy: Employment and Social Protection in Denmark; The active turn in Danish welfare policy: Employment and Social Protection in Denmark

Abrahamson, Peter
Fonte: UnB-BCE Publicador: UnB-BCE
Tipo: info:eu-repo/semantics/article; info:eu-repo/semantics/publishedVersion; Avaliado por Pares; ; Formato: application/pdf
Publicado em 23/05/2010 POR
Relevância na Pesquisa
76.3%
Flexicurity is viewed as the best way of securing both agood investment environment and a secure workforce. Flexicurity combines a flexible labor market, where employers have few or no restrictions with regard to firing workers, with generous welfare benefits; and the two are facilitated through active labor market policies. Denmark really has a flexible labor market; but benefits in case of unemployment and activation cannot be described as generous in a European context. Activation is often perceived as a punishment for being unemployed and has mainly been undertaken because it is mandatory, and one is in risk of losing benefits if one refuses an activation offer. There is a price to be paid for a high degree of flexibility, and it comes in the form of marginalization and exclusion. 25 percent of the Danish population of working ages is for long spells or permanently existing on not very generous benefits outside the labor market.; Flexicurity is viewed as the best way of securing both agood investment environment and a secure workforce. Flexicurity combines a flexible labor market, where employers have few or no restrictions with regard to firing workers, with generous welfare benefits; and the two are facilitated through active labor market policies. Denmark really has a flexible labor market; but benefits in case of unemployment and activation cannot be described as generous in a European context. Activation is often perceived as a punishment for being unemployed and has mainly been undertaken because it is mandatory...