Some groups, like women or workers in rural areas, who make up the majority of workers in the informal economy where wages are often lower, are the most vulnerable.
In this context,
Our report, a joint product of the World Bank and the International Labour Organization (ILO), finds that higher exports can translate into benefits for workers such as rising wages and a shift to formal employment.
This scenario comes with a caveat, however:
The gains from higher exports benefit some groups more than others, notably male, more-educated workers, and urban workers.
- Policy #1: Increasing the volume of exports can benefit local labor markets
Our results show that higher exports per worker in India boost wages on average between Rs 1,000 and Rs 8,000 and reduce informality for several workers ranging from 2.1 million to 12.3 million. In Sri Lanka, a similar pattern is evident for wages.
In that sense,Domestic firms would also benefit from help in identifying foreign market opportunities.
- Policy #2: Changing the composition of exports can help disadvantaged groups
It will also reduce the number of informal jobs, particularly for those with educational levels secondary and below and in rural areas.
Therefore,One step in that direction would entail increasing the ability of workers to move to areas and into occupations where new jobs are being created.
- Policy #3: Greater participation of women and disadvantaged groups in export-oriented industries could lower informal-sector employment
To that end,Greater participation of women in export-oriented industries also could improve labor market outcomes. This would require reducing economic and social obstacles to women joining the workforce, such as changing potentially discriminatory regulations now in place.