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Serbia - Doing More with Less : Addressing the Fiscal Crisis by Increasing Public Sector Productivity

World Bank
Fonte: World Bank Publicador: World Bank
Relevância na Pesquisa
36.45%
With its economy disrupted by the global economic crisis, the Serbian government faces tight budget constraints for several years to come. The Government has already responded by freezing wages and pension benefits and making cuts in capital works and other discretionary spending. These measures, while effective in the short term, are not necessarily sustainable over time. This report looks at more fundamental reforms in key public services, in order to identify opportunities for constraining expenditures through improvements in productivity. In 2010, the principal expenditure savings will instead continue to come from short term controls over expenditure aggregates: the freeze on pensions and wages and cuts in discretionary spending and capital works. The impact of the efficiency measures in this report will take more time to materialize. The Government should, nevertheless, make an immediate start. While the fiscal impact of these reforms will be evident over the medium term, their most important impact will be on the quality of public services. The reforms will stand Serbia in good stead even after economic growth resumes.

The Wage Effects of Immigration and Emigration

Docquier, Frederic; Ozden, Caglar; Peri, Giovanni
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
46.32%
Immigrants in Rome or Paris are more visible to the public eye than the Italian or French engineers in Silicon Valley, especially when it comes to the debate on the effects of immigration on the employment and wages of natives in high-income countries. This paper argues that such public fears, especially in European countries are misplaced; instead, more concern should be directed towards emigration. Using a new dataset on migration flows by education levels for the period 1990-2000, the results show the following: First, immigration had zero to small positive long-run effect on the average wages of natives, ranging from zero in Italy to +1.7 percent in Australia. Second, emigration had a mild to significant negative long-run effect ranging from zero for the US to -0.8 percent in the UK. Third, over the period 1990-2000, immigration generally improved the income distribution of European countries while emigration worsened it by increasing the wage gap between the high and low skilled natives. These patterns hold true using a range of parameters for the simulations...

Trade Liberalization, Firm Heterogneity, and Wages : New Evidence from Matched Employer-Employee Data

Krishna, Pravin; Poole, Jennifer P.; Senses, Mine Zeynep
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
56.49%
In this paper, the authors use a linked employer-employee database from Brazil to examine the impact of trade reform on the wages of workers employed at heterogeneous firms. The analysis of the data at the firm-level confirms earlier findings of a differential positive effect of trade liberalization on the average wages at exporting firms relative to non-exporting firms. However, this analysis of average firm-level wages is incomplete along several dimensions. First, it cannot fully account for the impact of a change in trade barriers on workforce composition especially in terms of unobservable (time-invariant) characteristics of workers (innate ability) and any additional productivity that obtains in the context of employment in the specific firm (match specific ability). Furthermore, the firm-level analysis is undertaken under the assumption that the assignment of workers to firms is random. This ignores the sorting of worker into firms and leads to a bias in estimates of the differential impact of trade on workers at exporting firms relative to non-exporting firms. Using detailed information on worker and firm characteristics to control for compositional effects and using firm-worker match specific effects to account for the endogenous mobility of workers...

Wage Subsidy and Labor Market Flexibility in South Africa

Go, Delfin S.; Kearney, Marna; Korman, Vijdan; Robinson, Sherman; Thierfelder, Karen
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
36.42%
In this paper, the authors use a highly disaggregate general equilibrium model to analyze the feasibility of a wage subsidy to unskilled workers in South Africa, isolating and estimating its potential employment effects and fiscal cost. They capture the structural characteristics of the labor market with several labor categories and substitution possibilities, linking the economy-wide results on relative prices, wages, and employment to a micro-simulation model with occupational choice probabilities in order to investigate the poverty and distributional consequences of the policy. The impact of a wage subsidy on employment, poverty, and inequality in South Africa depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labor are complements in production. The desired results are attainable only if there is sufficient flexibility in the labor market. Although the impact in a low case scenario can be improved by supporting policies that relax the skill constraint and increase the production capacity of the economy especially towards labor-intensive sectors...

The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia

Alatas, Vivi; Cameron, Lisa A.
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Artigo de Revista Científica
EN
Relevância na Pesquisa
46.24%
The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural experiment: not only did minimum wages in Indonesia increase sharply between 1990 and 1996, but the resultant increment in average wages varied markedly across different areas in Greater Jakarta. The authors use household-level labor market data to determine the extent of compliance with the legislation, then estimate the employment impact in the clothing, textiles, footwear, and leather industries based on a census of all large and medium-sized establishments. The evidence suggests that there was no negative employment impact for large establishments, either foreign or domestic, but that workers in smaller, domestic establishments may have suffered job losses as a result of minimum wage increases.

Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks

McKenzie, David; Theoharides, Caroline; Yang, Dean
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
36.49%
The authors use an original panel dataset of migrant departures from the Philippines to identify the responsiveness of migrant numbers and wages to gross domestic product shocks in destination countries. They find a large significant elasticity of migrant numbers to gross domestic product shocks at destination, but no significant wage response. This is consistent with binding minimum wages for migrant labor. This result implies that labor market imperfections that make international migration attractive also make migrant flows more sensitive to global business cycles. Difference-in-differences analysis of a minimum wage change for maids confirms that minimum wages bind and demand is price sensitive without these distortions.

Minimum Wages and Social Policy : Lessons from Developing Countries

Cunningham, Wendy
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
46.42%
This report examines how minimum wages affect the income poverty of workers, their households, and the state. It does not question whether or not the minimum wage is a good policy: instead, it focuses on the tradeoffs in setting the minimum wage level. It takes as a starting point the literature on the wage and employment effects of minimum wages in Latin America and expands the discussion in three ways. First, the household is placed at the center of the debate. Poverty and inequality are measured at the level of the household, rather than at the individual level, to allow for employment and wage trade-offs among individuals who pool their income. Second, new research is presented on how the minimum wage affects groups whose labor market participation and success is considered "vulnerable": that is, youth, women, the low-skilled, and informal sector workers. Third, the implications of the minimum wage on wage and social expenditures of the government are measured. In the end, the report argues that the minimum wage by itself is not a sufficient tool for protecting the income of the poorest households...

Agro-Manufactured Export Prices, Wages and Unemployment

Porto, Guido
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Relevância na Pesquisa
46.4%
This paper estimates the impacts of world agricultural trade liberalization on wages, employment and unemployment in Argentina, a country with positive net agricultural exports and high unemployment rates. In the estimation of these wage and unemployment responses, the empirical model allows for individual labor supply responses and for adjustment costs in labor demand. The findings show that a 10 percent increase in the price of agricultural exports would cause an increase in the Argentine employment probability of 1.36 percentage points, matched by a decline in the unemployment probability of 0.75 percentage points and an increase in labor market participation of 0.61 percentage points. Further, the unemployment rate would decline by 1.23 percentage points (by almost 10 percent). Expected wages would increase by 10.3 percent, an effect that is mostly driven by higher employment probabilities. This indicates that the bulk of the impacts of trade reforms originates in household responses in the presence of adjustment costs...

Do Minimum Wages in Latin America and the Caribbean Matter? Evidence from 19 Countries

Kristensen, Nicolai; Cunningham, Wendy
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
46.45%
Despite the existence of minimum wage legislation in most Latin American countries, there is little empirical evidence demonstrating its impact on the distribution of wages. In this study the authors analyze cross-country data for 19 Latin American and Caribbean (LAC) countries to gain an understanding of if and how minimum wages affect wage distributions in LAC countries. Although there is no single minimum wage institution in the LAC region, the authors find regional trends. Minimum wages affect the wage distribution in both the formal and, especially, the informal sector, both at the minimum wage and at multiples of the minimum. The minimum does not uniformly benefit low-wage workers: in countries where the minimum wage is relatively low compared to mean wages, the minimum wage affects the more disadvantaged segments of the labor force, namely informal sector workers, women, young and older workers, and the low skilled, but in countries where the minimum wage is relatively high compared to the wage distribution, it primarily affects wages of the high skilled. This indicates that the minimum does not generally lift the wages of all, but instead, it offers a wage into which employers can "lock in" wages that are already near that level. Thus...

Trends in Tariff Reforms and Trends in Wage Inequality

Galiano, Sebastian; Porto, Guido G.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
36.46%
The authors provide new evidence on the impacts of trade reforms on wages and wage inequality in developing countries. While most of the current literature on the topic achieves identification by comparing outcomes before and after one episode of trade liberalization across industries, they propose a stronger identifying strategy. The authors explore the recent historical record of policy changes adopted by Argentina: from significant protection in the early 1970s, to the first episode of liberalization during the late 1970s, back to a slowdown of reforms during the 1980s, to the second episode of liberalization in the 1990s. These swings in trade policy comprise broken trends in trade reforms that they can compare with observed trends in wages and wage inequality. After setting up unusual historical data sets of trends in tariffs, trends in wages, and trends in wage inequality, the evidence supports two well-known hypotheses: trade liberalization, other things being equal, (1) has reduced wages, and (2) has increased wage inequality.

Female Wages in the Apparel Industry Post-MFA : The Cases of Cambodia and Sri Lanka

Savchenko, Yevgeniya; Lopez Acevedo, Gladys
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
46.21%
The end of the Multi-fiber Arrangement/Agreement on Textiles and Clothing in 2005 was a major policy change that affected the allocation of global apparel productions well as the lives of workers involved in this sector. Since the apparel industry is often the major female employer in developing countries, this policy change was expected to have major implications for women. This paper analyzes the wages and working conditions of women in the apparel sector in Cambodia and Sri Lanka following the phase-out the Multi-fibre Arrangement. In both countries, apparel is a major source of exports, and women constitute 70 to 80 percent of the workers employed in the apparel industry. The paper finds that after the removal of the Multi-fibre Arrangement, apparel prices declined as a result of the increased competition. The theoretical model suggests that a decrease in prices would lead to a decrease in apparel wage premiums relative to other industries in the short run and the widening of the male-female wage gap in the long run. The empirical findings support these theoretical predictions. Wage premiums in the apparel sector relative to other industries went down post-Multi-fibre Arrangement in Cambodia and Sri Lanka and the male-female wage gap increased. The paper finds mixed results in terms of working conditions in Cambodia and Sri Lanka.

Does the Minimum Wage Affect Employment? Evidence from the Manufacturing Sector in Indonesia

Del Carpio, Ximena; Nguyen, Ha; Wang, Liang Choon
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
36.48%
Using survey data from the Indonesian manufacturing industry, this paper investigates the impact of minimum wage on employment and wages offered by Indonesian manufacturing firms from 1993 to 2006. It shows that the estimated effects of minimum wage on employment are positive within a province (i.e., with province fixed effects), but negative within a firm (i.e., with firm fixed effects), indicating the importance of using firm panel data to reduce the endogeneity bias in estimates. It finds significant heterogeneous effects of minimum-wage changes on employment. The employment effects of minimum wages are significant and negative among small firms and less educated workers, but not among large firms and workers with high school education and above. The negative employment impact is more severe for non-production workers than for production workers. The analysis also shows that the minimum wage disproportionally affects women: most of the non-production job losses are experienced by female workers. Lastly...

Can Minimum Wages Close the Gender Wage Gap?

Hallward-Driemeier, Mary; Rijkers, Bob; Waxman, Andrew
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
46.42%
Using manufacturing plant-level census data, this paper demonstrates that minimum wage increases in Indonesia reduced gender wage gaps among production workers, with heterogeneous impacts by level of education and position of the firm in the wage distribution. Paradoxically, educated women appear to have benefitted the most, particularly in the lower half of the firm average earnings distribution. By contrast, women who did not complete primary education did not benefit on average, and even lost ground in the upper end of the earnings distribution. Minimum wage increases were thus associated with exacerbated gender pay gaps among the least educated, and reduced gender gaps among the best educated production workers. Unconditional quantile regression analysis attests to wage compression and lighthouse effects. Changes in relative employment prospects were limited.

Trade, Wages, and Profits

Egger, Hartmut; Egger, Peter; Kreickemeier, Udo
Fonte: Universidade de Tubinga Publicador: Universidade de Tubinga
Tipo: ResearchPaper
EN
Relevância na Pesquisa
46.17%
This paper formulates a structural empirical model of heterogeneous firms whose workers exhibit fair-wage preferences. In the underlying theoretical framework, such preferences lead to a link between a firm’s operating profits on the one hand and wages of workers employed by this firm on the other hand. The latter establishes an exporter wage premium, since exporters have higher profits, given their productivity, than non-exporting firms. We estimate the parameters of the model in a data-set of five European economies and find that, when evaluated at these parameter values, the model has a high level of explanatory power. The estimates also enable us to quantify the exporter wage premium and the consequences of trade for the main variables of interest. According to our results, openness to international trade contributes to greater inequality across firms in terms of both operating profits and average wages. We also find evidence for gains from trade for all five countries, which go along with negative, but quantitatively moderate, aggregate employment effects.

Azerbaijan : Inclusive Growth in a Resource-Rich Economy

Onder, Harun
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH; EN_US
Relevância na Pesquisa
36.45%
Azerbaijan experienced a 'golden age' in the last decade, during which the average growth rate reached record high levels and poverty decreased significantly. On average, the economy grew by 15.3 percent per year in real terms during this period, mainly driven by the oil sector (21.5 percent growth per year), but with a significant contribution from the non-oil sector (11.1 percent per year). As a result, poverty declined dramatically from 49.6 percent in 2001 to 15.8 percent in 2008 the latest year for which household survey data was available when this report was prepared. This report takes an inclusive growth approach to investigating the ways in which the country's high growth was translated into significant poverty reduction. First chapter summarizes the sources of growth in Azerbaijan with an emphasis on structural transformation and discusses highlights of the inclusive growth methodology. Second chapter explores how growth helped to reduce poverty. Third chapter analyzes the sustainability and inclusiveness of the recent growth. Finally...

Enforcement of Labor Regulation, Informal Labor, and Firm Performance

Almeida, Rita; Carneiro, Pedro
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH
Relevância na Pesquisa
46.28%
This paper investigates how enforcement of labor regulation affects the firm's use of informal employment and its impact on firm performance. Using firm level data on informal employment and firm performance, and administrative data on enforcement of regulation at the city level, the authors show that in areas where law enforcement is stricter firms employ a smaller amount of informal employment. Furthermore, by reducing the firm's access to unregulated labor, stricter enforcement also decreases average wages, productivity, and investment. The results are robust to several specification changes, and to instrumenting enforcement with (1) measures of access of labor inspectors to firms, and (2) measures of general law enforcement in the area where the firm is located.

What Drives Short-Run Labor Market Volatility in Offshoring Industries? Evidence from Northern Mexico during 2007–2009

Kaplan, David S.; Lederman, Daniel; Robertson, Raymond
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
EN_US
Relevância na Pesquisa
46.45%
Recent research shows that employment in Mexico's offshoring maquiladora industries is twice as volatile as employment in their U.S. industry counterparts. The analyses in this paper use data from Mexico's social security records and U.S. customs between the first quarter of 2007 and the last quarter of 2009 to identify four channels through which economic shocks emanating from the United States were amplified when transmitted into Mexico's offshoring labor market of Northern Mexico. First, employment and imports within industries are complements, which is consistent with imports being used as inputs for the assembly of exportable goods within industries. That is, when imports fell during the crisis, employment in Mexico was reduced rather than protected by the fall of imports. Second, contrary to other studies, employment is more responsive than wages to trade shocks. Third, fluctuations in Mexico-U.S. trade were associated with changes in the composition of employment, with the skill level of workers rising during downturns and falling during upswings. This implies that the correlation between average wages and trade shocks is partly driven by labor-force compositional effects, which may obscure individual-worker wage flexibility. Fourth...

Globalization, Wages, and the Quality of Jobs : Five Country Studies

Robertson, Raymond; Brown, Drusilla; Pierre, Gaëlle; Sanchez-Puerta, María Laura
Fonte: World Bank Publicador: World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH
Relevância na Pesquisa
36.44%
The country studies in this volume analyze the link between globalization and working conditions in Cambodia, El Salvador, Honduras, Indonesia, and Madagascar. These countries vary significantly in population, economic circumstances, region, history, and institutions. All have experienced liberalization and globalization in the last 20 years. The heterogeneity of these countries provides the basis for a useful comparison of the effects of globalization on working conditions. As suggested in the framework, each country study has three main components: a description of the country's experience with globalization, a qualitative part that analyzes country-specific aspects of working conditions, and an analysis of changes in interindustry wage differentials (IIWDs) that can be compared across countries. In general, globalization has been characterized by export-driven foreign direct investment (FDI) concentrated in relatively few sectors. Export-driven FDI in the apparel sector plays a prominent role in each country...

Serbia - Right-Sizing the Government Wage Bill

World Bank
Fonte: World Bank Publicador: World Bank
Tipo: Economic & Sector Work :: Public Expenditure Review
ENGLISH
Relevância na Pesquisa
36.47%
Serbia's public sector wage bill constitutes a significant share of total government expenditure. At present, it is significantly higher than in most neighboring European Union (EU) member countries. This is largely due to higher average levels of compensation, rather than higher levels of staffing. While wage spending has fallen recently this is not the occasion to be sanguine about the Government's wage and employment policies. There are two reasons. First, continuing control over the wage bill is a key part of the Government's overall deficit reduction strategy. Given the Government's reluctance to raise taxes and the difficulty it confronts in reducing other major categories of expenditures (particularly pensions), restraining the wage bill is critical to fiscal sustainability. In connection with its standby arrangement with the International Monetary Fund (IMF), the government is committed to enacting fiscal responsibility legislation which would cap wage bill spending at eight percent of gross domestic product (GDP) over the medium term. To date...

Ethiopia : Urban Labor Markets, Challenges and Prospects, Volume 1. Synthesis Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Other Poverty Study; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
46.28%
This report focuses on a central element of Ethiopia's challenge: the urban labor market. The headlines, which are detailed in the report, are dramatic, and include the following: open unemployment has been persistently high and average duration is long, though recent trends suggest improved performance. There is a significant segmentation-two relatively privileged sector in the public and formal private sectors, a massive informal sector and a large stock of unemployed. Individual transitions across these states have increased over time, but remain relatively limited. Formal sector employment in urban areas is dominated by the state and manufacturing sector employment remains among the lowest in the world. The majority of those who are working in urban areas are engaged in informal sector activity, typically as a last resort but also as a persistent state. Average wages are low, especially for the unskilled and in the informal sector, but productivity is also very low. Women are especially disadvantaged in the labor market-and typically face worse outcomes with higher levels of unemployment...