Methods that use satellite data and machine learning present a good peek into how Big Data and new analytical methods will change how we measure poverty. I am not a poverty specialist, so I am wondering if these data and techniques can help in how we estimate job growth.
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We are developing Macro Simulation Models to estimate how investments and interventions may generate jobs. Following the Jobs Study conducted by the International Finance Corporation (IFC), the World Bank Group’s private sector arm, the Let’s Work Partnership was established to develop, refine, and apply tools to estimate direct, indirect, and induced job effects. Macro models are one of these tools.
This year’s International Women’s Day “Women in the Changing World of Work: Planet 50-50 by 2030” places great emphasis on equality and economic empowerment. When countries give women greater opportunities to participate in the economy, the benefits extend far beyond individual girls and women but also to societies and economies as a whole. A recent study shows that raising labor participation of women at par with men can increase GDP in the United States by 5 percent, in the UAE by 12 percent and in Egypt by 34 percent.
My colleague Victoria and I had an opportunity recently to meet with students at the Tajik-Russian Slavonic University in Dushanbe, Tajikistan, as part of our research and preparation for a new report called Tajikistan Jobs Diagnostic: Strategic Framework for Jobs.
Curious to learn about their future professional ambitions, we asked one class of students how many of them would like to work in the private sector after they graduate. Only about 10% of the students raised their hands. We also asked them how many would like to work for the government. This time, around 20% raised their hands.
In addition to correctly measuring the jobs directly generated from interventions and investments, development agencies also need to estimate the resulting indirect impacts and general equilibrium effects. These are hard to measure. My recent blog highlighted the progress that donors, international financial institutions, and other multilateral agencies are making in developing standardized tools to measure these impacts. In addition to standardization, the focus is now on strengthening existing measurement tools and addressing the challenges that are left.