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Minimum Wage

Should developing countries increase their minimum wages? Guest post by Andrés Ham

In the closing scene of Christopher Nolan’s The Dark Knight, Police Commissioner Gordon tells his son that Batman is “the hero Gotham deserves but not the one it needs right now” (video). This quote provides an interesting policy analogy with minimum wage increases. The benefits of raising minimum wages are something we believe workers deserve: better pay. Unfortunately, the costs tend to involve higher unemployment, which no country needs right now.
 

Preventing distortions in minimum wages

Ximena Del Carpio's picture
#breakthechian
Source: UN


On International Anti-corruption Day 2014, one of the issues we at the Stolen Asset Recovery Initiative want to illustrate - is how recovering stolen assets helps fight corruption and end impunity.

On International Anti-Corruption Day, those involved in this effort, gather to express a shared commitment to take action, and to pledge - in the words of this year’s Twitter hashtag – to #breakthechain, against all forms of corruption - from petty bribes to grand corruption.   

Here at the World Bank, we are hosting the ‘International Corruption Hunters Alliance’. The Duke of Cambridge, Prince William, spoke out strongly, highlighting the malignant effects of corruption as, ‘an abuse of power; the pursuit of money or influence at the expense of society as a whole’.

Improving compliance with minimum wage standards

Uma Rani's picture

Photo: Devin Poolman | Flickr Creative Commons

Nicaragua’s Public-Private Partnerships (PPP) program is taking off. In less than a year, the country has moved quickly, overcoming hurdles to produce a PPP law, supporting regulations, and a well-staffed PPP unit. Its first deals are getting closer to fruition—the World Bank Group (WBG) team working on PPPs in Central America has just received four pre-feasibility studies for its top projects. Two of these are moving fresh out of the pipeline—the Pacific coastal toll road and a cruise ship terminal and marina in San Juan del Sur.

Devising Minimum Wages in Emerging Markets

Jobs Group's picture

Ariel Rubinstein sat down for a video interview with me last week following a DEC lecture. A professor at Tel Aviv University as well as NYU, Rubinstein is an eminent game theorist and expert on the economic theory behind bargaining.

He spoke about how economic theory has gone through fundamental changes, in no small part due to growing interest in behavioral economics.

Demystifying the Impact of Minimum Wages

Jobs Group's picture
A professor teaching cell biology and biochemistry at a university in Africa. (Stephan Gladieu / World Bank)

Happy UN Day for South –South Cooperation!
 
Investment in skills is vital to economic growth and competitiveness and poverty reduction. I believe that there is no better way to do that than to educate young graduates with expertise in high-demand areas to help grow African economies, create jobs, and support research.

Avoiding the Extremes in Labor Regulations

Gordon Betcherman's picture

Les systèmes de prépaiement peuvent-ils élargir l’accès aux services de l’eau aux populations défavorisées des villes et centres urbains d’Afrique ? Peuvent-ils en améliorer la qualité ? Cette solution peut-elle au contraire interdire aux plus pauvres un plus large accès à l’eau ? Les systèmes de prépaiement sont-ils trop coûteux, imposent-ils de nouvelles contraintes sur le plan technique, social et de l'accessibilité des prestataires de service qui peinent déjà à répondre à une demande en eau croissante ? Et qu’en pensent les usagers ?

A Tale of Two Impacts: Minimum Wage Outcomes in South Africa

Haroon Bhorat's picture

Worker pruning fruit trees Economist and Nobel Prize laureate James M. Buchanan remarked to the Wall Street Journal in 1996 that "Just as no physicist would claim that "water runs uphill”, no self-respecting economist would claim that increases in the minimum wage increase employment."  Of course this statement remains broadly true today, but the advent of better data, improved statistical techniques and the proliferation of country studies – have made economists far more careful about pre-judging the impact of minimum wages on employment and wages.  Indeed, in a now famous study of fast food restaurants in New Jersey and Pennsylvania, David Card and Alan Krueger showed how the imposition of a minimum wage had no significant disemployment effects, and in some cases increased employment, arising out of a large enough increase in demand for the firms’ products.
 
The evidence for South Africa, some twenty years after the demise of apartheid, is equally compelling.  In a two-part study, my co-authors and I find an intriguing set of contrasting economic outcomes, from the imposition of a series of sectoral minimum wage laws.  In South Africa, the minimum wage setting body, known as the Employment Conditions Commission (ECC), advises the Minister of Labour on appropriate and feasible minimum wages for different sectors or sub-sectors in the economy.  Currently, the economy has in place 11 such sectoral minimum wage laws in sectors ranging from Agriculture and Domestic Work, to Retail and Private Security.

Checking Up on Agricultural Minimum Wages in South Africa

Haroon Bhorat's picture
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what did I miss?
what did I miss?
For the past two decades, I've worked on issues at the intersection of the education and technology sectors in middle- and low-income countries and emerging markets around the world. It's been a fascinating job: Over the past 20 years, I've been an advisor to, evaluator of, and/or working-level participant in, educational technology ('edtech') initiatives in over 50 such countries. When it comes to ICT use in education, the promised revolution always seems to be just around the corner. Indeed: I am regularly pitched ideas by people who note that, while many past promises about the potential of the use of new technologies in education have failed to pan out, they are confident that "this time, it's different".

At the same time, I am quite often asked to help other folks identify intriguing initiatives that might, individually and/or collectively, illuminate emerging trends and approaches in this sector:

"I'm interested in examples of innovative educational technology projects from around the world, especially those primarily focused on helping teachers and learners in developing countries. In other words: Not the usual suspects. Can you suggest a few projects and companies that I might not know about -- but should?"

I receive a version of this request most every week (sometimes even multiple times in a single day). Given the frequency of such inquiries, I thought I'd quickly highlight 20 such efforts from around the world, in the hope that people might find this useful. The hope is to point readers in the direction of some interesting projects that they might not know much about, but from which there is much we can learn. 

While I am not sure if, indeed, things will turn out to be 'different this time around', the overall volume of such projects, and the sophistication of many of them, are quite notable. There is more happening, in more places, than ever before. A number of efforts have been informed (in good ways) by past failures. That said, others will no doubt attempt to 'reinvent the flat tire' and display a characteristic common to Einstein's definition of insanity: "doing the same thing over and over again and expecting different results". Hopefully none of the groups profiled below will fall into that trap, but I suspect that a few of them might.

The list here, a mix of for-profit and non-profit initiatives, is deliberately idiosyncratic and non-representative (see the many caveats and explanations that follow below the list). Some of these projects are no doubt doomed to 'fail'; others will most likely be restructured more than once as they try, to borrow the words of Deng Xiaopeng, to "cross the river by feeling the stones". And maybe, just maybe, a few of them might actually turn out to be as 'transformative' as they hope to be. 

With that said, and in alphabetical order, here are:
 
20 innovative edtech projects from around the world

Minimum Wages Aren’t Always the Best Way to Improve Social Welfare

Edgard Rodriguez's picture

Ideas about what is important gain currency in the international development community with the regularity of ocean waves reaching the shore. As yesterday’s important idea recedes back into the ocean, today’s idea laps at our feet. A few years ago, the idea of country ownership came up in nearly every conversation about health information system (HIS) strengthening. We wanted to be sure that systems were not just dropped on a country, and that the country in question would value the system enough to use it and maintain it. After a few years, the salience of country ownership gave way to the idea of sustainability. The two terms share some elements—both express an interest in long-term maintenance. But this particular notion of sustainability explicitly included the transition of funding from donors to host governments.

Let Good Sense Prevail in Bangladesh’s Garment Industry

Zahid Hussain's picture
Over the last several years, information and communication technologies (ICTs) have been a critical component of human and social development around the world. ICTs have helped drive economies, revolutionize education, and improve government’s service delivery and citizens’ engagement. But who collects and measures the data to show the crucial impact of the expanding information society?

For the past decade, the Partnership on Measuring ICT for Development has worked toward putting together a framework to improve the availability and quality of official ICT statistics, including use of computers, the Internet and mobile phones by people around the world. The World Bank and 12 partner organizations have led this effort, and will celebrate 10 years of achievement on June 12, 2014.