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Labor and Social Protection

Weekly Wire: The Global Forum

Roxanne Bauer's picture
 
These are some of the views and reports relevant to our readers that caught our attention this week.


Facebook’s Gateway Drug
The New York Times
SILICON VALLEY was once content to dominate the tech world. But recently, its leading companies have ventured deep into areas well outside its traditional bailiwick, most notably international development — promising to transform a field once dominated by national governments and international institutions into a permanent playground of hackathons and app-fueled disruption.  To observe this venture humanitarianism in action, look no further than Internet.org, a coalition of Facebook, Samsung and several other large tech companies that promises to bring low-cost Internet access to people in underserviced parts of the world, via smartphones. 

New World Order, Labor, Capital, and Ideas in the Power Law Economy
Foreign Affairs
Recent advances in technology have created an increasingly unified global marketplace for labor and capital. The ability of both to flow to their highest-value uses, regardless of their location, is equalizing their prices across the globe. In recent years, this broad factor-price equalization has benefited nations with abundant low-cost labor and those with access to cheap capital. Some have argued that the current era of rapid technological progress serves labor, and some have argued that it serves capital. What both camps have slighted is the fact that technology is not only integrating existing sources of labor and capital but also creating new ones.

Where in the world are young people out of work?

Leila Rafei's picture

As International Youth Day approaches next week, I've found myself wondering what are the primary issues affecting young people throughout the world. One topic that seems to be a common thread across regions and income groups is youth unemployment, which remains more than double the rate of unemployment for the general population.

It's well known that youth populations are on the rise in the developing world, particularly. What does this mean for the millions of young people who enter the workforce every year?

Youth unemployment is defined as individuals aged 15-24 who are without work, but are currently available for work and have sought it in the recent past. Below, I analyze data from World Development Indicators. These data come originally from the International Labour Organization (ILO), which produces its own estimates that are harmonized to account for inconsistences in the data source, definition, and methodologies. ILO estimates may differ from official unemployment statistics produced by national statistical offices.  

Asia maintains lowest levels of youth unemployment
Regional levels of youth unemployment have barely changed in the past two decades. South Asia and East Asia and Pacific have maintained the lowest rates, hovering at about 10% for the last 20 years. Meanwhile, the Middle East and North Africa region has had the highest rate of youth unemployment since the 1990s, and clocked in a figure of about 27% in 2012. The biggest increase in the youth unemployment rate has been in the Europe and Central Asia region, where after years of steady decline rates have risen to over 20% since the financial crisis in 2008.

Chart 1

Do Cash Transfer Programs Lower Child Labor?

Do cash transfer programs - social protection programs that provide income to poor households often on the condition that children in these households attend school - lower child labor? Answering this question is important for a variety of reasons. Child labor is widely prevalent. According to the latest estimates of the International Labour Organization, about 10% of the children aged 5 to 14 worldwide are engaged in economic activities, often despite national child labor regulation prohibiting their involvement in work. Participation in child labor is often feared to affect children's ability to learn in school, to affect their health both in the short and long-run, and to result in negative externalities. And, while cash transfer programs are currently operated by many countries around the world and many of them target populations with high child labor prevalence rates, in theory their effect on child labor is ambiguous.

Tariffs for Standards?

Hassan Zaman's picture

Bangladesh Duty- and quota-free access for exports to global markets is something developing country trade negotiators have demanded for years.  Few other “stroke-of-the-pen” measures could boost employment and reduce poverty in low income countries in such large numbers. For instance  if the US removed tariffs on Bangladeshi garments – which average around 13%, but for some items are as high as 33% – then exports to the US could rise by  $1.5 billion from the FY13 level of $5 billion, in turn generating employment for at least an additional half a million, primarily female, workers.[1]  Examples of other countries facing US tariffs include Cambodia (12.8% average tariff rate on its exports to the US), India (4.01%), Indonesia (5.73%), and Vietnam (7.41%). Progress in trade facilitation would likely have even greater pay-offs to growth and employment, but these require structural reforms and investments, while the decision to remove tariffs is a simpler, “stroke-of-the-pen” measure.

Juggling Labor, Credit, and Crops in Zambia

Kelsey Jack's picture

Experimental harvest of provitamin A-enriched orange maize, Zambia, 2010. Photo credit: Flickr @CIMMYT

When one part of the local economy fails, it spills over into other parts of the economy. Maybe this isn't so surprising. However, recent research in Zambia highlights a less obvious link: farmers who can't get access to credit during the hungry season (January to March) increase their off-farm labor supply, drive down wages, and maybe even undermine their own agricultural yields.Fortunately, there is new evidence that providing consumption loans can help farmers invest in their own fields, and — we hope — boost their productivity.

Sticky Feet: How Workers’ Reluctance to Move Can Reduce Gains from Trade

Elizabeth Ruppert Bulmer's picture

When economists think about price shocks, they consider how a change in price will affect the supply and demand of a product. But when that product is human – i.e., a worker – interpreting the impact of a price – or wage – shock is no longer cut and dried.

Just consider: If your wage was suddenly cut, would you remain in your current job despite the loss in earnings? Would you quit immediately, or look for a new job while continuing to work? How long could you survive on your lower earnings? Would you be forced to sell your house or other assets? How much money and effort would you invest in finding a better job? Would your personal circumstances allow you to take a better job in a distant location? Would you uproot your family for this job? 

July 11, 2014: This Week in #SouthAsiaDev

Mary Ongwen's picture
We've rounded up 19 tweets, posts, links, and +1's on South Asia-related development news, innovation and social good that caught our eye this week. Countries included: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal

When bad people do good surveys

Markus Goldstein's picture
So there I was, a graduate student doing my PhD fieldwork.    In the rather hot office at the University of Ghana, I was going through questionnaire after questionnaire checking for consistency, missed questions and other dimensions of quality.   All of a sudden I saw a pattern:  in the time allocation questions, men in one village seemed to be doing the exact same things, for the same amount of time, on two very different days of the week.  
 

Young Egyptians still Waiting for Economic Opportunities

Raghada Abdel Hamed's picture
 World Bank l Kim Eun Yeul

Education and employment are key problems for young people in Egypt, who say they need to see changes—in terms of more jobs and better education—in the present, not in the distant “future”, the word they always hear used in promises of change in Egypt.

Labor Regulations Must Account for Both Jobs and Welfare

Carmen Pagés's picture

Why do labor regulations matter and should they protect workers or jobs, especially in developing countries? Carmen Pagés — Chief of the Labor Markets and Social Security Unit at the Inter-American Development Bank (IDB) — tells the JKP that labor regulations matter for jobs and productivity, including which types of jobs get created (formal or informal) and in which sectors.


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