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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
36.73%
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...

Employment and Shared Growth : Rethinking the Role of Labor Mobility for Development

Paci, Pierella; Serneels, Pieter
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
36.73%
This edited volume brings together the papers presented at the conference, "Rethinking the Role of Jobs for Shared Growth," held in Washington, DC, in June 2006. The common theme is that of mobility in the labor market. As growth is related to sectoral shifts in economic activity, the mobility of labor plays a crucial role in ensuring sustainable growth whose benefits are shared amongst all individuals. The papers in this volume focus on selected priority issues at the frontier of research in the microeconomics of labor markets in developing countries, multi-segmented labor markets, the role of informal employment and self-employment, the effect of worker mobility on income, and the impact of firm dynamics on growth and employment. These are important parts of the puzzle and contribute to a better understanding of the role of employment in the economic development of low-income countries.

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
36.73%
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
36.75%
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...

Armenia - Labor Market Dynamics : Volume 2. Main Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Relevância na Pesquisa
36.74%
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 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
36.74%
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...

Turkey : Managing Labor Markets Through the Economic Cycle

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
36.73%
The Turkish economy was hit hard by the global economic crisis, but recovered fast and strong. The economy had already started to slow down in 2007, but the global financial events of late 2008 led to a sharp contraction starting in the last quarter of 2008 until growth resumed in the last quarter of 2009. The recovery was rapid, with growth reaching 9 percent in 2010 and 8.5 percent in 2011. This study looks at how the labor market fared during the recent downturn and recovery and informs policies to manage labor markets through the economic cycle and address the jobs challenge in Turkey. The study investigates: (i) pre-crisis labor market trends and the structural jobs challenge in Turkey; (ii) aggregate and distributional impacts of the recent crisis, and subsequent recovery, on the labor market; and (iii) recent policy measures and existing labor market institutions in the context of observed labor market outcomes. Based on this analysis and a comparison with selected countries from around the world...

Labor Market Institutions : A Review of the Literature

Betcherman, Gordon
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
EN_US
Relevância na Pesquisa
36.73%
This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Impacts studied are on living standards (employment and earnings effects), productivity, and social cohesion, to the extent that this has been analyzed. Strong and opposing views are held on the costs and benefits of labor market institutions. On balance, the results of this review suggest that, in most cases, the impacts of these institutions are smaller than the heat of the debates would suggest. Efficiency effects of labor market regulations and collective bargaining are sometimes found but not always, and the effects can be in either direction and are usually modest. Distributional impacts are clearer, with two effects predominating: an equalizing effect among covered workers but groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. While the overall conclusion is one of modest effects in most cases, this does not mean that impacts cannot be more dramatic where regulations are set or institutions operate in ways that exacerbate the labor market imperfections that they were designed to address.

Labor Markets for Inclusive Growth

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
36.73%
This policy note outlines short, and medium-term policy options for addressing critical challenges affecting labor markets in Mexico, and in particular labor productivity. As labor is the main source of income for most of the population, poverty is closely linked to underemployment and low wages. Yet labor markets have played a limited role in poverty reduction in Mexico. Labor income accounted for just 22 percent of the decline in poverty in Mexico over the last decade compared with 38 percent in the rest of the region. Between the third quarter of 2008 and the third quarter of 2011, the labor income poverty index2 continued to decline in Brazil, Ecuador, and Peru but increased in Mexico. The equivalent measure produced by CONEVAL (Consejo Nacional de Evaluation), shows the labor poverty trend to be increasing through the first quarter of 2012. Finding the right bundle of policies to improve labor productivity and the functioning of the labor markets can serve to improve economic growth and welfare outcomes.

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
36.73%
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...

Labor Market Policies under a Youth Bulge : How to Benefit from Demographic Dividend in Pakistan

Robalino, David; Cho, Yoonyoung
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
36.73%
This paper assesses labor market trends and outcomes in Pakistan over the past decade. It shows that despite a high rate of employment growth, labor market outcomes have been disappointing: most jobs have been created in low productivity sectors/activities, and even if they provide a minimum level of income to often avoid poverty, they remain low quality jobs providing little or no protection to workers against shocks. In addition, female participation rates for women are very low and there are large income disparities between rural and urban areas, and across sectors. A fundamental part of the problem is the low level of education of the labor force. Pakistan is currently in the midst of a demographic transition that is bringing a growing number of youth into the labor market. This youth bulge that is unwinding opens both challenges and opportunities. Challenges because of the need to create enough jobs to employ new entrants; Opportunities, because if this is done the country will enjoy a demographic dividend ...

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
36.73%
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...

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
36.73%
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
36.74%
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...

Pakistan Labor Market Study : Regulation, Job Creation, and Skills Formation in the Manufacturing Sector

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: PSD, Privatization and Industrial Policy; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
36.74%
In an effort to improve employment outcomes and industrial productivity, the Government of Pakistan (GoP) has launched a dual-track reform process involving broad-based overhaul of labor laws and institutions, and expansion and reform of the Vocational and Technical Training (VTT) system. Labor market regulation and laws are useful economic and social institutions designed to protect workers from undesirable consequences of market failure such as arbitrary or discriminatory actions by employers. They also help stabilize employment and household incomes against aggregate business cycles and shocks. Labor regulation is also an important element of society's instruments for the provision of social security and the maintenance of health, safety, and environmental standards in economic activities. Labor regulation in Pakistan is excessive by international standards, as can be seen from data on a number of indicators of labor market flexibility. All things considered, Pakistani industry and workers will seem to be better off with a more flexible labor market. The report analyzes the existing labor laws and institutions...

Job Creation in Mozambique : Is Labor Law Reform the Answer?

Ministry of Planning and Development, Mozambique; World Bank
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Economic & Sector Work :: Other Poverty Study; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
36.73%
This paper analyzes the potential economic impact of changes to the labor laws proposed in 2006. The economic logic behind these reforms is reviewed, and the conditions under which the reforms could be expected to have the maximum impact on employment are isolated. Next, the experiences of selected developing countries which have undertaken similar reforms are reviewed, which showed the importance of initial conditions and economic trends outside of the labor market in ensuring a successful reform. Third, the main provisions of the proposed reforms are explained. The analysis concludes that given Mozambique s initial conditions, including strong demand from private sector employers for change, the scope of proposed reforms, and the potential for continued economic growth, the reforms should increase firms' profit margins, and as a result, a positive employment effect is possible in the medium term. The analysis also shows that although the reforms are deep compared with the starting point, even if reforms are enacted...

Azerbaijan : Enterprise Restructuring and Labor Redeployment, Volume 1, Main Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Social Analysis; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
36.74%
The main objective of this report is, first, to examine changes in the welfare and labor market status of workers in Azerbaijan, with concentration on large state-owned enterprises (SOEs) already displaced or which may be displaced because of enterprise restructuring and privatization. This includes identifying: a) dominant patterns in labor market behavior, b) changes in worker socioeconomic status in the wake of redundancy; and c) assistance received under enterprise social programs and other government social safety nets. Second, the study also explores patterns of job creation and job destruction, and the dynamics of labor demand, including any barriers to firm entry and growth. The study focuses largely on identifying informational and institutional gaps in elaborating a general labor redeployment program suitable for conditions in Azerbaijan. Suggestions for the introduction of labor redeployment activities and enterprise social plans are provided that would enable authorities to design relevant mitigating measures. The report concludes that findings indicate labor market interventions have great potential to improve labor market performance; however, whether or not this potential is realized depends on a number of factors, and numerous variables can intervene to affect the final outcome of their implementation. These include external factors such as stable macroeconomic conditions...

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
36.74%
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.

Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Policy Note; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
36.74%
In response to prolonged recession, in April 2010 the Croatian Government adopted an Economic Recovery Program to safeguard macroeconomic stability and support faster recovery of the private sector. A central element of the program is revision of labor regulations to create a more dynamic labor market by ensuring labor force flexibility and job security. The goal is to increase the labor force participation rate and ensure that it has the skills and competencies required by the evolving and dynamic private sector. The Croatian Ministries of Finance and labor asked the World Bank for support in design of possible labor legislation reform. The objective of this note is to benchmark Croatia's legislation and help identify legal constraints on achieving a more dynamic and flexible labor market. Changes to employment protection legislation (EPL) can be politically difficult. They therefore need to be preceded by a public information campaign explaining their rationale and by dialogue with social partners. The central message to be conveyed to the public is that relaxing the most rigid provisions of the labor law will eventually lead to better employment prospects...

Female labor supply and divorce: new evidence from Ireland

Bargain, Olivier; González, Libertad; Keane, Claire; Özcan, Berkay
Fonte: Institute for the Study of Labor (IZA) Publicador: Institute for the Study of Labor (IZA)
Tipo: Monograph; NonPeerReviewed Formato: application/pdf
Publicado em /05/2010 EN; EN
Relevância na Pesquisa
46.49%
If participation in the labor market helps to secure women’s outside options in the case of divorce/separation, an increase in the perceived risk of marital dissolution may accelerate the increase in female labor supply. This simple prediction has been tested in the literature using time and/or spatial variation in divorce legislation (e.g., across US states), leading to mixed results. In this paper, we suggest testing this hypothesis by exploiting a more radical policy change, i.e., the legalization of divorce. In Ireland, the right to divorce was introduced in 1996, followed by an acceleration of marriage breakdown rates. We use this fundamental change in the Irish society as a natural experiment. We follow a difference-in-difference approach, using families for whom the dissolution risk is small as a control group. Our results suggest that the legalization of divorce contributed to a significant increase in female labor supply, mostly at the extensive margin. Results are not driven by selection and are robust to several specification checks, including the introduction of household fixed effects and an improved match between control and treatment groups using propensity score reweighting.