This document summarizes the World Development Report 2013 published by the World Bank. It discusses the huge jobs challenge facing many developing countries due to large youth populations. It defines what constitutes a job and how jobs can drive development by reducing poverty and increasing living standards. The report examines what types of jobs may contribute more to development through productivity, social cohesion, and other factors. It proposes that policies are needed at multiple levels, including fundamentals, labor policies, and beyond labor policies, to effectively address the jobs challenge. The document encourages continued discussion on its findings through an online knowledge platform.

1. World Development Report
2013 The World Bank
3/13/2012
Moving jobs to center stage 1
Labor Market Core Course, May 9, 2013

2. 2 Main messages
World Development Report 2013
The World Bank

3. 3 The jobs challenge
World Development Report 2013
The World Bank
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
The World Bank

6. 6 Part I
World Development Report 2013
The World Bank
I. Jobs are
transformational

7. 7 The jobs challenge
World Development Report 2013
The World Bank
What is a job?

8. 8 Jobs are transformational
World Development Report 2013
The World Bank
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
The World Bank
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
World Development Report 2013
The World Bank
II. What are
good jobs for development?

14. 14 Valuing jobs
Individual and social valuations of jobs often differ

15. 15 Valuing jobs
World Development Report 2013
The World Bank
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
The World Bank
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
The World Bank
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?

22. 22
World Development Report 2013
The World Bank
III. Policies through the
jobs lens
Part III

23. Policies through the jobs lens23
World Development Report 2013
The World Bank
Three distinct layers of policies are needed

24. 24
Fundamentals
24 Jobs and social cohesion

25. Policies through the jobs lens25
World Development Report 2013
The World Bank
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
World Development Report 2013
The World Bank
March 15 2012
26 Labor policies revisited

27. Active Labor Market Programs – Training
alone often has limited success
World Development Report 2013
The World Bank
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
The World Bank
Three distinct layers of policies are needed

29. Beyond labor policies29
World Development Report 2013
The World Bank
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
The World Bank
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