Ceilings on lending rates remain a widely-used instrument in many EMDEs as well as developed economies. The economic and political rationale for putting ceilings on lending rates is to protect consumers from usury or to make credit cheaper and more accessible. Our recent working paper shows that at least 76 countries around the world, representing more than 80% of global GDP and global financial assets, impose some restrictions on lending rates. These countries are not clustered in specific regions or income groups, but spread across all geographic and income dimensions.
Amid the recent rise of populism and protectionism, the labor market implications of trade have increasingly moved to the center of political and economic debates. Autor et al (2013), in an influential paper, find that U.S. regions that are more exposed to import-competing manufacturing industries witnessed larger declines in manufacturing employment and wages.
Non-energy prices fell almost 1 percent due to a drop in metal prices. Agricultural prices increased 1 percent, largely on higher cocoa prices (+18 percent), maize and soybean meal (+5 percent each), as well as cotton and soybeans (+4 percent each). Fertilizer prices rose more than 1 percent, led by TSP (triple superphosphate) (+3 percent) and DAP (diammonium phosphate) (+2 percent).
Metals prices dropped 5 percent, led by iron ore prices (-9 percent), zinc and lead (-7 percent each), and aluminum (-5 percent).
Precious metals prices were marginally down due to a 1 percent decline in silver prices.
The Pink Sheet is a monthly report that monitors commodity price movements.
Source: World Bank.
Across European countries, women continue to earn less than men. Looking at data for full-time working women across 30 countries, we find that women would have needed an average raise of 19 percent of their hourly wage to match male wages. Take France, for example, where the gap is close to the regional average: this would mean going from 584 Euros to 697 Euros for a 40-hour work week. In fact, in some countries the gap was higher, reaching 1/3rd of women's salaries in 2015 (see Figure 1). However, the lowest observed gaps are not found in Scandinavia, as you might expect, but in Croatia, Greece, and Belgium, where women would require a 12% wage increase to fill the gap. And these gaps have persisted over time. Over a five-year period, the gap decreased in only 10 of the 30 European countries we looked at. The most notable decreases were in Estonia (10 percentage points), the Slovak Republic (5 percentage points), and Switzerland (7 percentage points). For others, the gap has increased, particularly in Poland, Bulgaria, Lithuania, and France, where the gap has doubled, while in some Scandinavian countries (Denmark, Finland, Norway) and Latvia, the gap has remained relatively constant.
Plenty of vibrant discussions on the role of cash transfers in the ‘graduation’ agenda…
Banerjee et al are back with a new NBER paper on the classic graduation model (a package of assets, training, coaching, and savings). They explore two variants: whether the transfer of assets only would generate similar impacts, and whether access to a savings account and a deposit collection service would generate comparable impacts. Neither outperforms the holistic package. Similarly, a CSAE paper by Sedlmayr et al assesses graduation variants in Uganda--the full package of transfers and training, only the transfers, transfers with only a light-touch training and just attempting to boost savings. They find that cash only was less effective than the more integrated interventions.
How much food is produced on a plot of land? The answer is central to several pressing questions in agricultural and development economics: How efficiently do smallholders use their labor and land? What interventions are most effective at lifting smallholders out of poverty? Are smallholders better off investing more time and resources on the farm, or intensifying their reliance on off-farm employment? The answers in part depend on the ability to accurately measure crop production. This is why household and farm surveys across the developing world, such as those supported by the World Bank Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) initiative, attempt to obtain precise, within-farm measures of crop production and productivity.
In a sector where a proliferation of research seemingly has contributed at least as much to confusion as to progress, the 2018 World Development Report (WDR), Learning to Realize Education’s Promise sheds new light, and points towards fresh, hopeful pathways forward. It is a landmark contribution.
“Education for all” was the seductive promise of the millennium. Yet all too many children are attending school without acquiring even basic literacy or numeracy. Why?
Is artificial intelligence the future for economic development? Earlier this month, a group of World Bank staff, academic researchers, and technology company representatives convened at a conference in San Francisco to discuss new advances in artificial intelligence. One of the takeaways for Bank staff was how AI technologies might be useful for Bank operations and clients. Below you’ll find a full round-up of all the papers and research-in-progress that was presented. All slides that were shared publicly are linked here, as well as papers or other relevant sites.