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Labor and Social Protection

Should I stay or should I go? How cash transfers can affect migration

Ugo Gentilini's picture
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With 875 million people “on the move” by 2050, there is an durge of interest on how development policy interacts with such a complex phenomenon. Cash transfers, one of the hottest development topics, are surprisingly missing from the debate.

Has Bhutan’s growth been jobless?

Tenzin Lhaden's picture
Bhutan's youth unemployment rate has increased from 10.7 percent in 2015 to 13.2 percent in 2016
Bhutan continues to maintain solid growth and macroeconomic stability but job creation is lagging; its  youth unemployment rate has increased from 10.7 percent in 2015 to 13.2 percent in 2016. This indicates that high growth has not been able to generate enough jobs for youth. 

“The main driver of growth in Bhutan continues to be the hydropower sector, but electricity generation does not create job,” said a senior government officials attending the presentation of The World Bank’s South Asia Focus on Jobless Growth on June 28th in Thimphu. The report was presented by Martin Rama, World Bank South Asia Region Chief Economist and was attended by senior government officials, parliamentarians and development partners. The presentation alongside the launch of Bhutan Development Update was a great opportunity for the policy makers to better understand and synthesize Bhutan and the South Asia region’s development opportunities.

In the case of Bhutan, it seems clear that growth alone will not allow it to attain higher employment rates as enjoyed by some other developing countries.

"More than 1.8 million young people will reach working age every month in South Asia through 2025 and the good news is that economic growth is creating jobs in the region,” said Martin Rama,. “But providing opportunities to these young entrants while attracting more women into the labor market will require generating even more jobs for every point of economic growth.”

The report informs that the fall in employment rates has been much faster in the region particularly in India, Bhutan and Sri Lanka and especially for women, risking foregoing the demographic dividend. While it is evident that the number of working age people is increasing, the proporation who are at work has declined owing to prioritization of the households to education, health and other commitments with increasing level of income.

Technology can help spring workers from the informality trap

Kristalina Georgieva's picture
Women stitch handicrafts at Everest Fashion Fair Craft in Lalitpur, Nepal. © Peter Kapuscinski/World Bank
Women stitch handicrafts at Everest Fashion Fair Craft in Lalitpur, Nepal. © Peter Kapuscinski/World Bank

Technology and what it will do to change how we work is the driving obsession of the moment. The truth is that nobody knows for sure what will happen – the only certainty is uncertainty. How then should we plan for the jobs that don’t yet exist?
 
Our starting point is to deal with what we know – and the biggest challenge that the future of work faces – and has faced for decades – is the vast numbers of people who live day to day on casual labor, not knowing from one week to the next if they will have a job and unable to plan ahead, let alone months rather than years, for their children’s prosperity. We call this the informal economy – and as with so much pseudo-technical language which erects barriers, the phrase fails to convey the abject state of purgatory to which it condemns millions of workers and their families around the world.

What will be the future of work?

Jim Yong Kim's picture


Do you wonder if the good fortune and opportunities that you’ve enjoyed in your professional life will be available to your children, and to their children? At a time of strong global economic growth, it may seem paradoxical that we face an existential crisis around the future of work. But the pace of innovation is accelerating, and the jobs of the future – in a few months or a few years – will require specific, complex skills. Human capital will become an ever more valuable resource.

In short, the changing nature of work – and how best to prepare people for the jobs of the future – are some of the toughest challenges countries face, which is why they’re the subject of this year’s World Development Report.

Because the future of work matters to all of us, we decided to give this report an unprecedented level of transparency. For the first time since the World Bank began publishing the WDR in 1978, the report is completely transparent throughout the writing process. Every Friday afternoon, the latest draft is uploaded to the World Bank website, so that anyone with internet access has an opportunity to read it and engage with the team of authors. I can’t promise that the WDR won’t have changed a week from now, which is why I encourage you to keep revisiting it as we keep revising it.

For new readers, here are a few insights into the report’s contents that I hope will get you thinking about the future of work:

How to boost female employment in South Asia

Martin Rama's picture
What's driving female employment in South Asia to decrease


South Asia is booming. In 2018, GDP growth for the region as a whole is expected to accelerate to 6.9 percent, making it the fastest growing region in the world. However, fast GDP growth has not translated into fast employment growth. In fact, employment rates have declined across the region, with women accounting for most of this decline.

Between 2005 and 2015, female employment rates declined by 5 percent per year in India, 3 percent per year in Bhutan, and 1 percent per year in Sri Lanka. While it is not surprising for female employment rates to decline with economic growth and then increase, in what is commonly known as the U-shaped female labor force function (a term coined by Claudia Goldin in 1995), the trends observed in South Asia stand out. Not only has female employment declined much more than could have been anticipated, it is likely to decline further as countries such as India continue to grow and urbanize.

The unusual trend for female employment rates in South Asia is clear from Figure 1. While male employment rates in South Asia are in line with those of other countries at the same income level, female employment rates are well below.
From the South Asia Economic Focus
Source: South Asia Economic Focus (Spring 2018).

If women are choosing to exit the labor force as family incomes rise, should policymakers worry? There are at least three reasons why the drop in female employment rates may have important social costs. First, household choices may not necessarily match women’s preferences. Those preferences reflect the influence of ideas and norms about what is women’s work and men’s work as well as other gendered notions such as the idea that women should take care of the children and housework. Second, when women control a greater share of household incomes, children are healthier and do better in school. Third, when women work for pay, they have a greater voice in their households, in their communities, and in society. The economic gains from women participating equally in the labor market are sizable: A recent study estimated that the overall gain in GDP to South Asia from closing gender gaps in employment and entrepreneurship would be close to 25 percent.

Automation and innovation: Forces shaping the future of work

Simeon Djankov's picture

IT’S robots that mostly come to mind when you ask people about the future of work. Robots taking our jobs, to be specific. And it’s a reaction that’s two centuries old, in a replay of Lancashire weavers attacking looms and stocking frames at the start of the first Industrial Revolution. A secondary reaction, among a much smaller group, is the creation of new jobs in the coming fourth Industrial Revolution.

Professor Ed Glaeser at Harvard neatly summarizes this dichotomy in one figure:


 

What’s new in social protection – June edition

Ugo Gentilini's picture

Let’s start with social protection in Africa. A new paper by Kagin et al. estimates that in Malawi, each Malawi Kwacha (MK) transferred through the Social Cash Transfer Program generates 1.88 MK, while multipliers of public works are between 2.9-3.24 MK. In the same country, the Malawi Economic Monitor by Kandoole et al. has a very crisp, insightful edition discussing safety nets, e.g., spending is only 0.6% of GDP compared to 2% of input subsidies, and almost 6% on humanitarian aid.

Technology works for getting poor people’s problems fixed – we just have to get it right

Kristalina Georgieva's picture
© Sarah Farhat/World Bank

One of the encouraging signs that I pick up whenever I travel is the difference that technology is making to the lives of millions of marginalized people. In most cases it’s happening on a small, non-flashy scale in hundreds of different ways, quietly improving the opportunities that that have been denied to remote communities, women and young people for getting a foot on the ladder.

And because it is discreet and under the radar I dare as an optimist to suggest that we are at the beginning of something big – a slow tsunami of success. Let me give you some reasons why I believe this.

It’s time to end malnutrition in South Asia

Idah Z. Pswarayi-Riddihough's picture
Chronic malnutrition remains prevalent across the region as many poor South Asians cannot afford nutritious foods or don’t have the relevant information or education to make smart dietary choices.
Chronic malnutrition remains prevalent across South Asia as many poor South Asians cannot afford nutritious foods or don’t have the relevant information or education to make smart dietary choices.

In Sri Lanka, as in the rest of South Asia, improving agricultural production has long been a priority to achieve food security. 

But growing more crops has hardly lessened the plight of malnutrition. 

Chronic malnutrition remains prevalent across the region as many poor South Asians cannot afford nutritious foods or don’t have the relevant information or education to make smart dietary choices. 
And children and the poorest are particularly at risk.

South Asia is home to about 62 million of the world’s 155 million children considered as stunted-- or too short for their age. 

And more than half of the world’s 52 million children identified as wasted—or too thin for their height—live in South Asia. 

Moderate-to-severe stunting rates ranged from 17 percent in Sri Lanka in 2016 to a high 45 percent in Pakistan in 2012–13, with rates above 30 percent for most countries in the region.

Moderate-to-severe wasting rates ranged from 2 percent in Bhutan in 2015 to 21 percent in India in 2015–16, with rates above 10 percent for most countries in the region. 

The social and economic cost of malnutrition is substantial, linked to impaired cognitive development, chronic disease, and lower future earnings.

And sadly, much remains to be done to ensure children across South Asia can access the nutritious foods they need to live healthy lives. 

Global migration and urban expansion: an interview with Ambassador William L. Swing

Kristyn Schrader-King's picture


Migration is one of the major defining factors of our time.

Today, one billion people – one out of seven people in the world – are migrants, including over 250 million people living outside their home country and an estimated 750 million domestic migrants.


According to a new World Bank report, “Moving for Prosperity: Global Migration and Labor Markets,” some of the biggest gains in global welfare and economic development come from the movement of people between countries.

However, migration is often an overlooked piece of the globalization mosaic. Rapid urbanization adds to the complex picture of migration – and poses a challenge to the host communities and migrants alike.

What can be done to improve governance of global migration and encourage actions on urban expansion?

As part of our Spring Meetings 2018 Interview Series, we spoke with Ambassador William L. Swing, Director General of the International Organization for Migration (IOM). Watch the interview to learn more.


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