3. 3 The jobs challenge
World Development Report 2013
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Jobs challenges are huge
4. 4 The jobs challenge
World Development Report 2013
The World Bank
A job does not always come with a wage
5. 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
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6. 6 Part I
World Development Report 2013
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I. Jobs are
transformational
7. 7 The jobs challenge
World Development Report 2013
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What is a job?
8. 8 Jobs are transformational
World Development Report 2013
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Jobs drive development
9. Source: Inchauste and others 2012 for the WDR 2013
Jobs take households out of poverty
9 Jobs and living standards
10. Job creation and destruction happen everywhere
10 Jobs and productivity
World Development Report 2013
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Source: WDR 2013 team based on Bartelsman, Haltiwanger, and Scarpetta (2009), and Shiferaw and Bedi
(2010).
11. The employment share of microenterprises is greater
in developing countries
11 Jobs and productivity
12. 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. 13 Part II
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II. What are
good jobs for development?
15. 15 Valuing jobs
World Development Report 2013
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Some jobs do more for development
16. 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. 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. 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
19. A typology of jobs challenges
19 Diverse jobs agendas
20. Agendas connected by the migration of workers
20 Connected jobs agendas
World Development Report 2013
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Source: WDR 2013 team based on Özden and others (2011).
21. Agendas connected by the migration of jobs
Manufacturing
jobs have migrated
– are services next?
21 Connected jobs agendas
World Development Report 2013
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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?
25. Policies through the jobs lens25
World Development Report 2013
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Three distinct layers of policies are needed
26. 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
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March 15 2012
26 Labor policies revisited
27. Active Labor Market Programs – Training
alone often has limited success
World Development Report 2013
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March 15 2012
27 Labor policies revisited
Combined work and training increases the success rates of
programs
28. Policies through the jobs lens28
World Development Report 2013
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Three distinct layers of policies are needed
29. Beyond labor policies29
World Development Report 2013
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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?
30. The difficult questions30
World Development Report 2013
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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. 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