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WORLD DEVELOPMENT REPORT 2019
THE CHANGING NATURE OF WORK
Technological Progress Can Expand Job
Opportunities
1
Lost employment in old
sectors
Remaining employment in
old sectors
New employment in new
sectors
Innovation
Sectors (ordered by susceptibility to automation)
Employment
in
each
sector
Automation
Source: Authors’ analyses.
2
http://www.worldbank.org/en/publication/wdr2019
More than 1 million
downloads
What is
changing?
Industrial Jobs are Falling in the West and Rising
in the East
4
Source: Authors’ analyses based on World Bank’s World Development Indicators (dataset)
Recent Technological Advances Accelerate Firm
Growth
5
Source: Authors’ analyses based on Walmart Annual Reports, Statista.com, NetEase.com
Technology Is Disrupting the Nature of Firms
Posing New Policy Challenges
6
Source: Author’s analysis based on data from Safaricom, KCB Bank Group, AirBnb, Marriot International Inc., Financial Times.
New Superstar Firms: digital platforms operating globally, existing in the cloud
Technology is
Changing How
People Work and
the Terms on
Which They Work
LESS standard long-term contract
MORE short-term work often via online work
platforms
Advances in Technology Call for New Skills seemingly
overnight: “Adaptability” is Increasingly in Demand
8
Source: Authors’ analyses.
What can governments do?
What can
governments do?
Three Areas For Policy Action:
10
Human Capital and
Lifelong Learning
Social Protection
and Labor Policies
Revenue
Mobilization
The Human Capital Index 2018
11
CHILD WITH STUNTED BRAIN DEVELOPMENT HEALTHY, CARED FOR CHILD
The First 1,000 Days Lay A Lifelong Foundation
Source: Authors’ analyses.
151 Million Children Under 5 Are Stunted
Worldwide
13
Source: Authors’ analysis
Re-adjustment is a Matter of Lifelong Learning:
Tertiary Education Systems are Central
14
• Lifelong learning
• Platform for innovation
• Transferable Skills
Human Capital and
Lifelong Learning
Social Protection
and Labor Policies
Revenue
Mobilization
Three Areas For Policy Action:
15
Convergence in the nature of work? Persistent
informality and more fluid labor markets
16
64.7% average informality
in emerging economies
Labor market regulation
Social insurance
(mandatory and
voluntary)
** Rethinking Social Protection: Protect People,
Not Jobs
17
Source: Authors’ analysis.
Guaranteed
social
minimum
Aspiring to flexicurity…
ALB
ARM
AUT
AZE
BLR
BEL
BGR
HRV
CYP
CZE
DNK
EST
FIN
FRA
GEO
DEU
GRC
HUN
ISL
IRL
ITA
KAZ
KGZ
LVA LTU
MDA
NLD
NOR
POL
PRT
RUS
SMR
SRB
-3
-2
-1
0
1
2
3
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Protection
index
Flexibility index
Low
Low
High
High Low flexibility
High protection
High flexibility
Low protection
High flexibility
High protection
Low flexibility
Low protection
Source: World Bank (2018); Ridao-Cano and Bodewig (2018)
Complementing Strong Social Protection with
Labor Market Flexibility
Severance
Pay
Three Areas For Policy Action:
19
Human Capital and
Lifelong Learning
Social Protection
and Labor Policies
Revenue
Mobilization
Tax Revenues Have to Rise, Especially in
Developing Economies
20
Source: Authors’ analysis based on International Centre for Tax and Development (ICTD) and UNU-WIDER Government Revenue Dataset 2017.
Social Inclusion Is Costly
21
Source: Authors’ analysis based on World Bank World Development Indicators, World Bank PovcalNet, and United Nations World
Population Prospects.
Simulated cost of
UBI for closing the
poverty gap by
country income
group (% of GDP)
Some Countries Spend more on Energy Subsidies than
on Social Assistance.
22
Source: Authors’ analysis based on World Bank (2018a) and IMF (2015) database on country-level estimates
23
http://www.worldbank.org/en/publication/wdr2019
2019 World Development Report

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WDR19 english version - changing nature of work.pdf

  • 1. WORLD DEVELOPMENT REPORT 2019 THE CHANGING NATURE OF WORK
  • 2. Technological Progress Can Expand Job Opportunities 1 Lost employment in old sectors Remaining employment in old sectors New employment in new sectors Innovation Sectors (ordered by susceptibility to automation) Employment in each sector Automation Source: Authors’ analyses.
  • 5. Industrial Jobs are Falling in the West and Rising in the East 4 Source: Authors’ analyses based on World Bank’s World Development Indicators (dataset)
  • 6. Recent Technological Advances Accelerate Firm Growth 5 Source: Authors’ analyses based on Walmart Annual Reports, Statista.com, NetEase.com
  • 7. Technology Is Disrupting the Nature of Firms Posing New Policy Challenges 6 Source: Author’s analysis based on data from Safaricom, KCB Bank Group, AirBnb, Marriot International Inc., Financial Times. New Superstar Firms: digital platforms operating globally, existing in the cloud
  • 8. Technology is Changing How People Work and the Terms on Which They Work LESS standard long-term contract MORE short-term work often via online work platforms
  • 9. Advances in Technology Call for New Skills seemingly overnight: “Adaptability” is Increasingly in Demand 8 Source: Authors’ analyses.
  • 10. What can governments do? What can governments do?
  • 11. Three Areas For Policy Action: 10 Human Capital and Lifelong Learning Social Protection and Labor Policies Revenue Mobilization
  • 12. The Human Capital Index 2018 11
  • 13. CHILD WITH STUNTED BRAIN DEVELOPMENT HEALTHY, CARED FOR CHILD The First 1,000 Days Lay A Lifelong Foundation Source: Authors’ analyses.
  • 14. 151 Million Children Under 5 Are Stunted Worldwide 13 Source: Authors’ analysis
  • 15. Re-adjustment is a Matter of Lifelong Learning: Tertiary Education Systems are Central 14 • Lifelong learning • Platform for innovation • Transferable Skills
  • 16. Human Capital and Lifelong Learning Social Protection and Labor Policies Revenue Mobilization Three Areas For Policy Action: 15
  • 17. Convergence in the nature of work? Persistent informality and more fluid labor markets 16 64.7% average informality in emerging economies
  • 18. Labor market regulation Social insurance (mandatory and voluntary) ** Rethinking Social Protection: Protect People, Not Jobs 17 Source: Authors’ analysis. Guaranteed social minimum
  • 19. Aspiring to flexicurity… ALB ARM AUT AZE BLR BEL BGR HRV CYP CZE DNK EST FIN FRA GEO DEU GRC HUN ISL IRL ITA KAZ KGZ LVA LTU MDA NLD NOR POL PRT RUS SMR SRB -3 -2 -1 0 1 2 3 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Protection index Flexibility index Low Low High High Low flexibility High protection High flexibility Low protection High flexibility High protection Low flexibility Low protection Source: World Bank (2018); Ridao-Cano and Bodewig (2018) Complementing Strong Social Protection with Labor Market Flexibility Severance Pay
  • 20. Three Areas For Policy Action: 19 Human Capital and Lifelong Learning Social Protection and Labor Policies Revenue Mobilization
  • 21. Tax Revenues Have to Rise, Especially in Developing Economies 20 Source: Authors’ analysis based on International Centre for Tax and Development (ICTD) and UNU-WIDER Government Revenue Dataset 2017.
  • 22. Social Inclusion Is Costly 21 Source: Authors’ analysis based on World Bank World Development Indicators, World Bank PovcalNet, and United Nations World Population Prospects. Simulated cost of UBI for closing the poverty gap by country income group (% of GDP)
  • 23. Some Countries Spend more on Energy Subsidies than on Social Assistance. 22 Source: Authors’ analysis based on World Bank (2018a) and IMF (2015) database on country-level estimates