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A blueprint for better jobs in Kenya

Maria Laura Sanchez Puerta's picture
We recently completed a Jobs Diagnostic in Kenya to look at ways that the country can create better jobs, especially for young Kenyans. Skills development is fundamental to the transition to better jobs as we found that firm creation is low and that more productive firms do not create more jobs. This lack of growth of the more productive firms is the real challenge. Better, more productive, transformational jobs will be key helping the country meets its goals of Vision 2030.
 

Pathways to Prosperity: An e-Symposium

Hanan Jacoby's picture

 

Blog #8: In building and agri boom, rural wage lift

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

Real wages have risen across India in the past two decades, but the increase was especially marked among rural unskilled workers. Three drivers – falling rural female labor force participation, a construction boom, and favorable agricultural terms of trade -- help explain why unskilled rural workers fared better than their urban counterparts or workers with more education. Going forward, in light of lower agricultural prices and slower growth in the construction sector, some of the factors that contributed to the increase in relative wages for unskilled labor during this period may not be sustained over time. 

Jobs challenges and opportunities in Sierra Leone - notes from the field

Ian Walker's picture
A key theme in this year’s IDA replenishment is the need to improve jobs through accelerated economic transformation. Generating more jobs and increasing productivity by creating stronger market linkages is a challenge everywhere in the developing world. But it is both particularly important and difficult in countries facing fragility. Sierra Leone had hardly emerged from the effects of a long civil war when the Ebola crisis struck. Around the same time, the commodity super cycle began winding down in 2014, negatively affecting revenues. The Jobs Group is working with the Government in Sierra Leone to meet this challenge. A team recently visited Sierra Leone to see how World Bank Group operations are helping and to find out what more can be done to improve the outlook for jobs in the country.
 

Pathways to Prosperity: An e-Symposium

Carlos Felipe Balcazar's picture


Blog #7: Jobs, not transfers, the big poverty buster


India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 


The significant shift from farm work to non-farm sources of income accelerated the decline in poverty in India. Non-farm jobs pay more than agricultural labor, and incomes from both were propelled by a steep rise in wages for rural unskilled labor. While lower dependency rates and transfers - from remittances and social programs - have contributed to a reduction in poverty, they are not the primary drivers of the poverty decline between 2005 and 2012.

Caring about employer-supported childcare: Good for business, good for development

Carmen Niethammer's picture

It is not often that I get to reflect on my own early childhood experience: Some 40 years ago, I attended a public kindergarten in a small town in Germany. My mother would take me there on her blue bike at 7 a.m., I would spend the morning with eight other children my age, and at around 1 p.m., she would pick me up. Many of my friends and colleagues had similar early childhood experiences.
 
Considering that the potential benefits from supporting early childhood development range from healthy development to greater capacity to learn while in school and increased productivity in adulthood, I consider myself very lucky. Across the world, nearly half of all three- to six-year-olds (159 million children) are deprived of access to pre-primary education (UIS, 2012). Evidence from both developed and developing countries suggests that an additional dollar invested in high-quality preschool programs will yield a return of anywhere between US$6 and US$17.
 
More broadly speaking, a new study by ITUC shows that investment in the care economy of 2 percent of GDP in just seven developed countries would create more than 21 million jobs and help countries overcome the twin challenges of aging populations and economic stagnation.  So the development case for investing in childcare is clear. What about the business case?

Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series, I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030:
 good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.

Looking at urbanization through a jobs lens

Javier Sanchez-Reaza's picture
There is an undeniable link between urbanization and job creation – but what exactly is the relationship, and how could the potential of unprecedented urbanization growth most benefit the world’s urban poor looking for jobs? Urbanization can lead to more, better and inclusive jobs in cities around the world. But recent urbanization trends, particularly in Africa, show that in many cases urbanization is taking place without job creation. Focusing on issues such as reducing spatial mismatches may provide policy options to affect positive labor market outcomes. This is the first in a series of upcoming blogs looking at the connections, the dynamics and the interactions between urbanization and jobs.
 

Labor market polarization in developing countries: challenges ahead

Indhira Santos's picture

There is increasing evidence that labor markets in developed countries are polarizing or hollowing out. On the one hand, the share of employment in high-skilled, high-paying occupations (managers, professionals and technicians) and low-skilled, low-paying occupations (elementary, service, and sales workers) is growing. On the other hand, the share of employment in middle-skilled, middle-paying occupations (clerks, plant and machine operators) is being squeezed. There is ample evidence of polarization in the United States (see Acemoglu and Autor, 2011; Autor and Dorn, 2013; and  Autor (2014) for a less technical discussion), and also in Western Europe (Goos, Manning, and Salomons, 2014). Harrigan, Reshef and Toubal (2016), more recently, document the same phenomenon in France, using firm-level data.

In West Africa, education = jobs and jobs = development

Adaiah Lilenstein's picture
Job creation is a crucial aspect of development. And broad-based, high-quality education is crucial for inclusive development. Worryingly low levels of education quality and quantity show that there is a crisis of education in some West African countries. If inclusive growth is to pull people into the labor market and out of poverty, this must be addressed. Getting education right is a crucial first step on the road to creating better employment and reducing poverty. It must be considered a priority by national governments and donors alike.
 

Informality as a channel to cope with rigid labor markets

Ximena Del Carpio's picture
Rigid labor markets prevent formalization, especially when labor costs are high relative to the productivity of the workforce. Evidence from around the world, from developed and developing countries, shows that employers have a number of ways they adjust to the costs imposed by onerous labor policies. One of the main lessons that policy makers should learn, is that adopting measures that reduce rigidity and costs can help mitigate the negative impacts on unemployment and informality.
 

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