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Labor and Social Protection

The effects of minimum wages on jobs: Lessons from Seattle

Hernan Winkler's picture
Minimum wages around the world are most frequently set at around 40 percent of mean salaries. (Photo: Simone D. McCourtie / World Bank)

What can labor ministers in the developing world learn from the heated debate on minimum wages that Seattle’s dramatic reforms reignited? The answer may be confusion. After more than 6,000 scientific articles, the discussion on the costs and benefits of raising minimum wages is still one of those unresolved million-dollar questions: Many economists claim that it is a very effective way to guarantee decent jobs for workers and to reduce inequality, but other economists and policymakers seem convinced that it would do just the opposite. The recent experiment in Seattle, unfortunately, adds little clarity.

The jobs crisis in Palestine needs an innovative response

Ceyla Pazarbasioglu's picture
 Ahed Izhiman

Landing a job after college can be difficult anywhere, but it is especially hard in conflict-affected economies, such as Palestine. Joblessness and job insecurity are an unfortunate reality for too many young Palestinians.

Women: The Hidden Figures Behind Côte d’Ivoire’s Economic Emergence

Jacques Morisset's picture



Politicians and economists often go to great lengths to scrutinize hundreds of pieces of data to identify complicated solutions, to the point of ignoring the obvious facts staring them right in the face! Although Côte d'Ivoire is devising complex strategies in a bid to achieve middle-economy status, it tends to overlook the role of women, who largely face deep inequalities that are difficult to ignore.

Four policy approaches to support job creation through Global Value Chains

Ruchira Kumar's picture
 Maria Fleischmann / World Bank

Mexico created over 60,000 jobs between 1993 to 2000 upgrading the apparel value chain from assembly to direct distribution to customers.  (Photo: Maria Fleischmann / World Bank)

As we discussed in our previous post, Global Value Chains can lead to the creation of more, inclusive and better jobs. GVCs can be a win-win for firms that create better jobs while they enjoy greater efficiency, productivity, and profits. However, there is a potential trade-off between increasing competitiveness and job creation, and the exact nature of positive labor market outcomes depends on several parameters. Given the cross-border (and, therefore, multiple jurisdictive) nature of GVCs, national policy choices to strengthen positive labor outcomes are limited. However, national governments can make policy decisions to facilitate GVC participation that is commensurate with positive labor market outcomes.

Global Value Chains: a way to create more, better and inclusive jobs

Ruchira Kumar's picture
Photo by Jonathan Ernst / World Bank

Global Value Chains are a win-win for firms that enjoy greater efficiency, productivity, and profits while they create better jobs (Photo by Jonathan Ernst / World Bank)
 
Global Value Chains (GVC) are significant vehicles of job creation, employing around 17 million people worldwide and carrying a share of 60 percent of global trade. As globalization increases, GVCs are becoming more relevant in international production, trade, and investments. And Global Value Chains also have an important effect on job creation, and these jobs usually have higher wages and better working conditions. Global Value Chains can become a win-win for firms, which enjoy greater efficiency, productivity, and profits while they create better jobs. Here are some revealing facts about the potential of GVCs to create more and better jobs.

India: Is a college degree worth it?

Francisco Marmolejo's picture
 Arne Hoel / World Bank)
Three key factors are constraining learning and employability in India. (Photo: Arne Hoel / World Bank)

The last 15 years have witnessed the largest global expansion of tertiary education in recent history due to a 60 percent growth in student enrollment. India’s performance is even more dramatic—tertiary education expanded alm­ost a spectacular threefold, from 8.4 million students in 2000-01 to 23.8 million in 2013-14. The number of tertiary education institutions has also increased significantly.

Afghanistan’s energy sector leads the way for gender equality

World Bank Afghanistan's picture
 Rumi Consultancy/ World Bank
Afghanistan's power utility (DABS) has recently taken steps necessary to ensure that women are involved in all business operations within the organization. Photo: Rumi Consultancy/ World Bank


In Afghanistan, decades of violence, common discriminatory practices, and cultural barriers, including restrictions on mobility, have denied women job opportunities and left them severely underrepresented in all sectors of society.
 
Despite considerable achievements in the last decade, such as the national Constitution guaranteeing equal rights as well as increased enrollment in public schools and universities, achieving gender equality will require widespread social changes.
 
Yet, change is happening and Da Afghanistan Breshna Sherkat (DABS), Afghanistan’s national power utility, is showing the way.
 
With a workforce of about 7,000, the company employs only 218 women, most of whom at a junior support level. However, under the leadership of its new CEO, DABS management has committed to promoting gender equality.
 
The Planning and Capacity Support Project of the Afghanistan Reconstruction Trust Fund (ARTF), managed by the World Bank, is helping DABS deliver on that commitment. The project organized awareness sessions for DABS staff on gender-related issues and provided specialized training to female employees. DABS has committed to providing internships to female university graduates to ensure women can find job opportunities and fully participate in the energy sector.
 
Realizing that the majority of its female staff lacked the confidence to compete with men, DABS is facilitating access to new job opportunities for women employees and has taken steps to ensure that women are involved in all business operations within the organization.

The rippling economic impacts of child marriage

Quentin Wodon's picture
A new study finds that child marriage could cost developing countries trillions of dollars by 2030, with the largest economic cost coming from its impact on fertility and population growth.


Globally, more than 700 million women alive today married before the age of 18. Each year, 15 million additional girls are married as children, the vast majority of them in developing countries. Child marriage is widely considered a violation of human rights, and it is also a major impediment to gender equality. It profoundly affects the opportunities not only of child brides, but also of their children. And, as a study we issued this week concludes, it has significant economic implications as well.

A roadmap to reintegrate displaced and refugee Afghans

Shubham Chaudhuri's picture
A displaced family has taken shelter in a ruined house on the outskirts of Kabul. Photo: Rumi Consultancy/ World Bank


As the world marks World Refugee Day on June 20, we must remember that it is not only the refugee crisis that is hampering development efforts in many countries. There is also a silent emerging crisis of people driven from their homes to another part of their own country, people known as internally displaced persons (IDPs). It is a growing issue that several countries are facing, with enormous social and political pressures to address.

In Afghanistan, there are an estimated 1.2 million people who are internally displaced because of insecurity or are being forced to leave their homes due to natural disasters. This is in addition to the nearly 6 million people who have returned to Afghanistan since 2002, making one in five Afghans a returnee. In 2016, more than 620,000 Afghans returned from Pakistan alone.

The massive influx of returnees and IDPs is placing tremendous pressure on Afghanistan’s already fragile social and economic infrastructure and is a threat to regional stability.

When I first took up my position as Country Director of the World Bank for Afghanistan, I was struck by the plight of returnees and IDPs and by how hard-pressed the Afghan government was in dealing with them. During my first days in office, back in November 2016, I visited a United Nations High Commissioner for Refugees (UNHCR) center on the outskirts of Kabul. The center serves as the first entry point for returnees where they can receive assistance—including cash—and attend awareness and safety sessions to help them better integrate in their new communities.  


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