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Latin America & Caribbean

Debunking three myths about Informality

Jamele Rigolini's picture
The perceived benefits of formalization include better access to credit, justice, large formal clients, and, for the government, higher tax revenues. But according to recent literature, most formalization efforts resulted in modest and short term increases in formality rates.
Photo credit: Peter Kapuscinski / World Bank

Since the concept of the “informal sector” was coined half a century ago, countries all over the world have promoted the formalization of small- and medium-size enterprises. The perceived benefits of formalization include better access to credit, justice, large formal clients, and, for the government, higher tax revenues. But according to recent literature, most formalization efforts resulted in modest and short term increases in formality rates.

Creating new opportunities for young women in the digital economy

Mamadou Biteye's picture
Developing gender-inclusive digital jobs programs for youth is the subject of a new report, Digital Jobs for Youth: Young Women in the Digital Economy. Photo Credit: © Visual News Associates / World Bank 

Young people struggle to find jobs. Landing that first job is particularly challenging even for youth with quality education. In 2016, 100 young women under 25 in the Gjakova and Lipjan municipalities in Kosovo were seeking their first opportunity after completing university-level education. They  enrolled in the World Bank’s Women in Online Work (WoW) pilot, a training program that aims to equip beneficiaries with the skills they need to find work in the online freelancing market. Within three months of graduation, WoW’s online workers were earning twice the average national hourly wage in Kosovo. Some graduates even went on start their own ventures and hire other young women to work with them.

Unveiling new paths to create more Jobs for the Poor

Maria Laura Sanchez Puerta's picture
Also available in: Français
Onion field in Northern Côte d’Ivoire - Photo by Raphaela Karlen / World Bank

One out of ten people in the world —around 766 million people— still lived below the extreme poverty line in 2013. Most of them, 80 percent, live in rural areas and have very low productivity jobs. Improving jobs and earnings opportunities for these poor and vulnerable workers is at the core of the World Bank Group agenda and it requires holistic economic inclusion initiatives to move them into sustainable livelihoods.

Creating opportunities for young women through youth employment programs

Jose Manuel Romero's picture
Innovative programs can respond to gender disparities in youth employment. Photo: Dominic Chavez/ World Bank. 

The disadvantages young women face in the labor market and in entrepreneurship in developing countries are not only substantial and complex, but they quickly compound. A plethora of forces drive gender disparities in youth employment: lack of opportunities to develop the skills demanded by the labor market, family or social pressure dissuading them from entering desirable jobs or male-dominated sectors, a detrimental work environment, or a lack of available services such as childcare might make achieving success an uphill battle. Yet innovative youth employment programs can respond to gender issues. Below are three examples presented in a recent virtual workshop held by the Solutions for Youth Employment (S4YE) coalition with members of its Impact Portfolio community.

The invisible door: Three barriers limiting women’s access to work

Namita Datta's picture
Women’s labor force participation worldwide over the last two decades has stagnated, and women generally earn less than men. (Photo: Tom Perry / World Bank)
How can we Press For Progress —the theme of International Women's Day 2018— to improve women's opportunities at work? Despite progress on women’s health and education in the past few decades, the gender gap on access to jobs has remained a stubborn challenge.

In evaluating development projects, pressing for better tools in measuring job creation

Alvaro Gonzalez's picture
We learned that from potatoes and waste recycling in Lebanon to aquaculture and poultry in Zambia, it is possible to have a standardized base guideline; however, the methodology still needs to be adjusted for specific economic, political and social contexts. (Photo: Dominic Chavez / World Bank)


There is a well-known idiom saying that you can't compare apples and oranges. But this is precisely the challenge researchers often face when it comes to measuring the jobs impact of development projects. Having standardized impact evaluation tools and methods is a milestone for private sector-led job investments, and it allows international financial institutions, development practitioners, and governments to build on existing knowledge to develop solutions. And this is precisely one of the goals that Let's Work partnership, composed of 30 different institutions, is currently pursuing; to track the number of jobs generated from private sector-led interventions, the quality of those jobs, and how inclusive those jobs are in a standardized way, so apples are compared to apples and oranges to oranges.

How young people are rethinking the future of work

Esteve Sala's picture
(Photo: Michael Haws / World Bank)


When we talk about the future of work, it is important to include perspectives, ideas and solutions from young people as they are the driving force that can shape the future.  As we saw at the recent Youth Summit 2017, the younger, digitally-savvy generations —whether they are called Millennials, Gen Y, or Gen Z— shared solutions that helped tackle global challenges.  The two-day event welcomed young people to discuss how to leverage technology and innovation for development impact.  In this post, we interviewed —under a job-creation perspective—finalists of the summit's global competition.

Reforming Employment Services: Three Steps to Big Change

Jacqueline Mazza's picture
Increasing the number of jobs publicly listed, enabling public and private institutions to better connect workers to jobs will not likely solve the jobs problem in developing countries. (Photo: Jonathan Ernst / WorldBank)


With the right kind of reforms, public employment services can do a better job of matching job seekers from poor households. In low and middle-income countries, individuals from poor households find jobs through informal contacts; for example asking friends and family and other members of their limited network. But this type of informal job search tends to channel high concentrations of the poor individuals into informal, low-paid work.

Job seekers especially from poor households need bigger, more formal networks to go beyond the limited opportunities offered by the informal sector in their local communities. This is where public employment services can help, but in developing countries many of these services just simply do not work well: they suffer from limited financing and poor connections to employers, and governments are looking for ways to reform and modernize them to today’s job challenges.

There are lots of cases where developing countries have improved their public employment services and these can serve as models. The lessons from these successful reforms can be distilled and replicated. Based on our recent publication, here are three case-tested strategies that improved the performance, relevance and image of public employment services.

Accelerating and learning from innovations in youth employment projects

Namita Datta's picture
Rapid progress in digital technology, behavioral economics, evaluation methods, and the connectivity of youth in the developing world generates a stream of real-time insights and opportunities in project design and implementation. (Photo: Arne Hoel / World Bank)


Innovations in youth employment programs are critical to addressing this enormous development challenge effectively. Rapid progress in digital technology, behavioral economics, evaluation methods, and the connectivity of youth in the developing world generates a stream of real-time insights and opportunities in project design and implementation. Part of the challenge is the sheer number of projects (just in Egypt, there are over 180 youth employment programs). And even without being aware, projects often innovate out of necessity in response to situations they face on the ground. But innovations need to be tested in different country contexts to be able to make an impact at scale.

Through the new Solutions for Youth Employment (S4YE) report, our team ventured to curate a few such ongoing innovations as they were being implemented through S4YE’s Impact Portfolio — a group of 19 youth employment projects from different regions being implemented by  different partners across the globe. This network of youth employment practitioners serves as a dynamic learning community and laboratory for improving the jobs outcomes of youth globally.

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