Labor Markets Core Course 2013: World Development Report 2013 on Jobs
World Development Report2013 The World Bank3/13/2012Moving jobs to center stage 1Labor Market Core Course, May 9, 2013
2 Main messagesWorld Development Report 2013The World Bank
3 The jobs challengeWorld Development Report 2013The World BankJobs challenges are huge
4 The jobs challengeWorld Development Report 2013The World BankA job does not always come with a wage
Source: WDR 2013 team based on ILO data Source: WDR 2013 teamSouth Asia, Africa, and East Asia andthe Pacific face significant youth bulgesAlarming levels of youthidleness and unemployment5 The jobs challengeWorld Development Report 2013The World Bank
6 Part IWorld Development Report 2013The World BankI. Jobs aretransformational
7 The jobs challengeWorld Development Report 2013The World BankWhat is a job?
8 Jobs are transformationalWorld Development Report 2013The World BankJobs drive development
Source: Inchauste and others 2012 for the WDR 2013Jobs take households out of poverty9 Jobs and living standards
Job creation and destruction happen everywhere10 Jobs and productivityWorld Development Report 2013The World BankSource: WDR 2013 team based on Bartelsman, Haltiwanger, and Scarpetta (2009), and Shiferaw and Bedi(2010).
The employment share of microenterprises is greaterin developing countries11 Jobs and productivity
Source: Wietzke and McLeod 2012 for the WDR 2013Jobs are correlated with civic engagement12 Jobs and social cohesionActive membership and lack of a Job Active membership and motivating Job
13 Part IIWorld Development Report 2013The World BankII. What aregood jobs for development?
14 Valuing jobsIndividual and social valuations of jobs often differ
15 Valuing jobsWorld Development Report 2013The World BankSome jobs do more for development
16Some jobs do more for living standards• Earnings of others. Discrimination and unevenbargaining power can lead to distortions.• Household allocations.Female employment can change bargainingpower, increase investments in children.• Poverty reduction. Jobs that reduce poverty canbenefit society as well as individuals.16 Jobs and social cohesion
17Some jobs do more for productivity Agglomeration economies. Learning and imitationhappens in cities, through knowledge spillovers,exchange of ideas and better matching; and inindustrial clusters, through specialization, sharing ofcommon services and coordination. Global integration. Knowledge spillovers occurthrough international trade and participation in globalvalue chains. Environmental impacts. Some jobs impose a greatertoll on natural resources.17 Jobs and social cohesion
18Some jobs do more for social cohesion Social identity. Jobs can affect the well-being of othersby influencing values and behavior. Networks. Jobs connect people. They may contributeto tolerance by increasing direct knowledge betweenpeople of different social and ethnic backgrounds. Fairness. A perceived absence of fairness in access tojob opportunities, beyond one’s own job, canundermine having a stake in society and createtensions.18 Jobs and social cohesion
A typology of jobs challenges19 Diverse jobs agendas
Agendas connected by the migration of workers20 Connected jobs agendasWorld Development Report 2013The World BankSource: WDR 2013 team based on Özden and others (2011).
Agendas connected by the migration of jobs Manufacturingjobs have migrated– are services next?21 Connected jobs agendasWorld Development Report 2013The World BankSource: WDR 2013 team basedon data from the UnitedNations Industrial DevelopmentOrganization. Where willChina’s jobs in lightmanufacturing go aslabor costs increase?
22World Development Report 2013The World BankIII. Policies through thejobs lensPart III
Policies through the jobs lens23World Development Report 2013The World BankThree distinct layers of policies are needed
Policies through the jobs lens25World Development Report 2013The World BankThree distinct layers of policies are needed
Labor Policies• Regulation and minimum wages: Within a reasonable rangelabor market regulations have little impact on employmentor productivity.• Voice: new forms of voice are needed for those not in formallabor market. Productivity externalities happen in cities andclusters, implying that spatial negotiation can enhancecoordination• ALMPS: can have positive impact but can only be part of thesolutionWorld Development Report 2013The World BankMarch 15 201226 Labor policies revisited
Active Labor Market Programs – Trainingalone often has limited successWorld Development Report 2013The World BankMarch 15 201227 Labor policies revisitedCombined work and training increases the success rates ofprograms
Policies through the jobs lens28World Development Report 2013The World BankThree distinct layers of policies are needed
Beyond labor policies29World Development Report 2013The World BankGlobal partnerships for jobsRights and standards: pressure goes only so farFurther liberalizing investments, but managing the tradeoffsMigration policies: toward bilateral agreementsJobs are center stage, but where are the numbers?
The difficult questions30World Development Report 2013The World BankKey policy questions addressed through the ReportBut the 1st question is: what is a job? And the answer is not trivial2 • 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 Follow upWorld Development Report 2013The World BankTo continue the dialogue on what it takes tocreate good jobs for development join theinteractive Jobs Knowledge Platform at:www.jobsknowledge.orgTo download the World Development Report2013: Jobs, its background papers, databasesand explanatory videos, visit:http://www.worldbank.org/wdr2013