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November 2015

Colonial history affects labor regulations

Lucas Ronconi's picture

The long-lasting effects of European colonization strategies can be seen in labor regulations in the developing world.  In those territories where the Europeans pursued an extractive strategy, they created an economy characterized by monopolies and the exploitation of labor. This situation led to social unrest, and ultimately to the introduction of stringent labor laws in an attempt to buy social peace. In those places that were colonized in order for Europeans to live, more competitive economies were founded.

Outsourcing, technology, globalization and jobs

Jonathan Eaton's picture

Professor Jonathan Eaton from Penn State discusses how the interplay between outsourcing, technology and globalization are affecting people’s jobs. He also comments on how employment specialization will give way to employment generalization, emphasizing the worker’s ability to transition from one industry or occupation to the next as technological change and opportunities for outsourcing lead to changes in employment prospects. The implications for policy makers are that they need to train their workforce to be flexible. 

Does emigration really increase the wages of non-emigrants?

Alessio Brown's picture

Although immigration and its effect on labor markets in receiving countries is a frequent focus of research and public concern, there is less known about the impact of emigration on sending countries. Yet, as Benjamin Elsner explains in his recent study for IZA World of Labor, emigration actually has positive and large effects on wages in sending countries. 

Creating employment in post-conflict and fragile states

Nisha Arunatilake's picture

Violent conflicts, such as the one experienced by Sri Lanka, are caused by a variety of factors. Even when violent conflicts are concluded, the societies remain fragile. Fragility affects the demand for labour because firms and businesses are reluctant to invest. The poor quality of governance in affected areas further discourages private firms. But the Eastern Revival programme undertaken in Sri Lanka post 2007, enabled the fishing industry to rebound quickly. We look at how this was achieved. 

Does decentralization of collective bargaining in developing countries raise productivity?

Alessio Brown's picture

Recent empirical evidence from Latin America indicates that negotiating work rules at firm level rather than industry level may lead to greater productivity gains. However, bargaining does not follow a single model across developing countries, or even countries in a region. The results from a new IZA World of Labor study indicate that while industry-level bargaining may lower productivity by restricting managerial flexibility in response to market changes, firm-level negotiations are more efficient and improve productivity.

DFIs should work together to measure job impacts

Dirk Willem te Velde's picture

The creation of jobs and the promotion of economic transformation are the main development challenges in low and middle income countries. Development finance institutions (DFIs) support private sector activities through finance and technical assistance. These are key instruments in stimulating private sector-led job creation. However, without active collaboration amongst DFIs it will be difficult to fully understand their impact. For instance, collective action through the Let’s Work partnership has the potential to enhance the evidence base on the impact of DFI-supported firms on job creation.