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Improving access to jobs and earnings opportunities : the role of activation and graduation policies in developing countries

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Author Info

  • Almeida, Rita
  • Arbelaez, Juliana
  • Honorati, Maddalena
  • Kuddo, Arvo
  • Lohmann, Tanja
  • Ovadiya, Mirey
  • Pop, Lucian
  • Puerta, Maria Laura Sanchez
  • Weber, Michael

Abstract

Throughout the developing world there is a growing demand for advice on the design of policies to facilitate access of the most vulnerable individuals to jobs, while reducing their dependency from public income support schemes. Even though these policies are common to both the activation and graduation agendas, a separation is needed as the graduation of beneficiaries out of poverty is a much more ambitious agenda. This paper proposes a simple policy framework highlighting the most common barriers for productive employment. It also reviews the topic of incentive compatibility of income support schemes and employment support programs that are used to address them. The paper finds that, especially in middle income countries, activation and active labor market programs play an important role connecting individuals to jobs and improving earnings opportunities. In low income countries, these programs are far from being a panacea to graduate beneficiaries out of poverty. Furthermore, only scant evidence is available on the pathways to graduation and significant knowledge gaps remain. More cross-disciplinary research is needed to strengthen the evidence base and develop recommendations for different contexts and capacity levels.

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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 67610.

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Date of creation: 01 Mar 2012
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Handle: RePEc:wbk:hdnspu:67610

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Related research

Keywords: Labor Markets; Safety Nets and Transfers; Labor Policies; Rural Poverty Reduction; Poverty Impact Evaluation;

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References

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  1. Robalino, David A. & Zylberstajn, Eduardo & Zylberstajn, Helio & Afonso, Luis Eduardo, 2009. "Ex-ante methods to assess the impact of social insurance policies on labor supply with an application to Brazil," Social Protection Discussion Papers, The World Bank 52448, The World Bank.
  2. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, Springer, vol. 23(1/2), pages 203-235.
  3. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, MIT Press, vol. 2(4), pages 569-606, 06.
  4. David Robalino & Arup Banerji, 2009. "Addressing the Employment Effects of the Financial Crisis : The Role of Wage Subsidies and Reduced Work Schedules," World Bank Other Operational Studies 11717, The World Bank.
  5. James J. Heckman & Paul LaFontaine, 2006. "Bias Corrected Estimates of GED Returns," NBER Working Papers 12018, National Bureau of Economic Research, Inc.
  6. Angel-Urdinola, Diego F. & Semlali, Amina & Brodmann, Stefanie, 2010. "Non-public provision of active labor market programs in Arab- Mediterranean countries : an inventory of youth programs," Social Protection Discussion Papers, The World Bank 55673, The World Bank.
  7. Michael Svarer, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," Economics Working Papers, School of Economics and Management, University of Aarhus 2007-10, School of Economics and Management, University of Aarhus.
  8. Abdulai, Awudu & Barrett, Christopher B. & Hoddinott, John, 2005. "Does food aid Really have disincentive effects? New evidence from sub-Saharan Africa," World Development, Elsevier, Elsevier, vol. 33(10), pages 1689-1704, October.
  9. Rodríguez-Planas, Núria & Benus, Jacob, 2006. "Evaluating Active Labor Market Programs in Romania," IZA Discussion Papers 2464, Institute for the Study of Labor (IZA).
  10. Vodopivec, Milan & Worgotter, Andreas & Raju, Dhushyanth, 2003. "Unemployment benefit systems in Central and Eastern Europe : a review of the 1990s," Social Protection Discussion Papers, The World Bank 26307, The World Bank.
  11. Galasso, Emanuela & Ravallion, Martin & Salvia, Agustin, 2001. "Assisting the transition from workfare to work : a randomized experiment," Policy Research Working Paper Series, The World Bank 2738, The World Bank.
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Citations

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Cited by:
  1. Premand, Patrick & Brodmann, Stefanie & Almeida, Rita K. & Grun, Rebekka & Barouni, Mahdi, 2012. "Entrepreneurship Training and Self-Employment among University Graduates: Evidence from a Randomized Trial in Tunisia," IZA Discussion Papers 7079, Institute for the Study of Labor (IZA).
  2. Honorati, Maddalena & McArdle, Thomas P, 2013. "The nuts and bolts of designing and implementing training programs in developing countries," Social Protection Discussion Papers, The World Bank 78980, The World Bank.
  3. David Robalino & Michael Weber, 2013. "Designing and implementing unemployment benefit systems in middle and low income countries: beyond risk-pooling vs savings," IZA Journal of Labor Policy, Springer, Springer, vol. 2(1), pages 1-20, December.
  4. Vodopivec, Milan, 2009. "Introducing unemployment insurance to developing countries," Social Protection Discussion Papers, The World Bank 49170, The World Bank.
  5. Robalino, David & Margolis, David & Rother, Friederike & Newhouse, David & Lundberg, Mattias, 2013. "Youth employment : a human development agenda for the next decade," Social Protection Discussion Papers, The World Bank 83925, The World Bank.
  6. Cerutti, Paula & Fruttero, Anna & Grosh, Margaret & Kostenbaum, Silvana & Oliveri, Maria Laura & Rodriguez-Alas, Claudia & Strokova, Victoria, 2014. "Social assistance and labor market programs in Latin America : methodology and key findings from the social protection database," Social Protection Discussion Papers, The World Bank 88769, The World Bank.
  7. Domelen, Julie van, 2012. "Togo : towards a national social protection policy and strategy," Social Protection Discussion Papers, The World Bank 89000, The World Bank.
  8. Dorfman, Mark & Palacios, Robert, 2012. "World Bank support for pensions and social security," Social Protection Discussion Papers, The World Bank 70925, The World Bank.
  9. World Bank, 2012. "Resilience, Equity, and Opportunity," World Bank Other Operational Studies 12648, The World Bank.
  10. Umapathi, Nithin & Wang, Dewen & O'Keefe, Philip, 2013. "Eligibility thresholds for minimum living guarantee programs : international practices and implications for China," Social Protection Discussion Papers, The World Bank 83118, The World Bank.

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