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Labor Markets Core Course 2013: Jobs as Pathways to Ending Poverty and Boosting Shared Prosperity


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Labor Markets Core Course 2013: Jobs as Pathways to Ending Poverty and Boosting Shared Prosperity

  1. 1. Jobs as Pathways toEnding Poverty andBoosting SharedProsperityArup BanerjiWorld Bank Labor Core Course 2013
  2. 2. 2Renewed World Bank Group GoalsEnd extreme poverty: the percentage of peopleliving with less than US$ 1.25 a day to fall to 3percent by 2030Promote shared prosperity: foster incomegrowth of the bottom 40 percent of the populationin every countrySustainability, an overarching themeAchieving these goals require promotingenvironmental, social, and fiscal sustainability
  3. 3. 3The poverty target of 3% by 2030051015202530354045501980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024 2028
  4. 4. 4Most household income is generated through jobs70 6846596773497939 375838 3650362935102623 2435312117301741 45294738354953323554self-employment wage employment transfers otherSource: Covarrubias and others (2012) for WDR 2013
  5. 5. 5InclusiveGrowthJobCreationPovertyReduction,Growth ofIncomesInfrastructure,Human CapitalInvestmentsTransfersTaxesSo jobs are critical for both thegoals
  6. 6. 6But there are huge challenges …1. Insufficient demand for formal labor, andlow participation – especially for youth2. Low productivity of self-employment3. Inadequate skills4. Fragmented programs
  7. 7. 71. A world at work, but not a world of wage earnersWork status:farmersself-employedwage earnersSource: WDR 2013 Calculationswage43%farmers34%self-employed23%wage87%farmers5%self-employed8%wage66%farmers10%self-employed24%wage47%farmers26%self-employed27%wage50%farmers29%self-employed21%wage19%farmers48%self-employed33%East Asia and the Pacific Europe and Central AsiaLatin America andthe CaribbeanMiddle East and North Africa South AsiaSub-Saharan AfricaSource: WDR 2013
  8. 8. 80 10 20 30 40 50 60 70 80TanzaniaThailandUkraineGhanaBrazilIndonesiaIndiaChilePakistanTurkeyEgyptLebanonpercent of youth populationnot in school or labor force unemployedSource: WDR 20131. Unemployment but also idleness for youth
  9. 9. 92. Poverty and the prevalence of (lowproductivity) informal workSource: OECD: Is Informal Normal? and World Bank Group (2007).ARGBENBFABOLBRACHL COLCRI DOMDZAECUEGYGTMHNDHTIIDN INDIRNKENMARMEXMLIMOZNERPAKPANPERPHLPRYROMRUSSLVTHATUN TURVEN YEMZAFZMB0204060801000 10 20 30 40 50 60 70 80 90 100ShareofInformalEmploymentinTotalNon-AgriculturalEmploymentShare of Population Living Below 2 USD (PPP) a Day
  10. 10. 102. Women often over-represented in informalemployment53.552.354.364.983.173.477.285.747.850.249.15159.170.87882.90 20 40 60 80 100MexicoBrazilThailandSouth AfricaKenyaPhilippinesIndonesiaIndiaMenWomenShare of informalemployment intotal non-agriculturalemployment (in%)Source: OECDDevelopment Centre,2009
  11. 11. 113. Employers complain about the lack of job-relevantskillsSources: IFC Jobs Study, World Bank STEP study
  12. 12. 12(Source: World Bank 2010)CCTs:NutritionRiskmitigationandinnovation:SocialInsuranceActivelabormarketprograms:TrainingCCTs:EducationLaborregula-tions3. But ALMPs need complementary steps tobuild Skills
  13. 13. 13Pregnancy,EarlychildhoodSchool ageYouthWorkingageOld ageEmploymentservices,entrepreneurship,training and skillsUnemployment,disabilityinsuranceCCTs for (girls’)educationYouthemploymentprograms, skillstrainingOld-age pensions,disabilityinsuranceNutrition/ECD, CCTs forpre-school, healthExample: SPL programs across the life cycle4. Programs for labor opportunities need to worktogether across the life cycle
  14. 14. 14Towards answers 1: Three distinct layers of policiesare needed (WDR 2013)14Source: 2013 World Development Report on Jobs
  15. 15. 15ProgramProgramProgramProgramTowards answers 2: Building social protection andlabor systems (connected “portfolios” of programsto address various challengesAdministration level:Aim: Building basic subsystems tosupport one or more programs forsecurity, equity or opportunityAdmin.sub-systemsProgram level:Aim: Improving design of existingprograms and harmonizing acrossportfolio of programsPolicy Level:Aim: Ensuring overall policy coherenceacross programs and levels ofgovernmentSource: Robalino, Rawlings and Walker (2012)
  16. 16. 16ProgramProgramProgramProgramTowards answers 2: Building social protection andlabor systems: Examplese.g., connect beneficiarydatabases across training andunemployment benefitprogramsAdmin.sub-systemse.g., ensure that there is asmooth connection frombeneficiaries going fromwelfare to worke.g., promote coherencebetween taxation incentivesand employment objectivesSource: Robalino, Rawlings and Walker (2012)
  17. 17. 17Towards answers 3: Different countries havedifferent jobs challengesSource: WDR
  18. 18. on Jobs)www.jobsknowledge.orgFor further information, visit