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Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy

  • Alderman, Harold
  • Yemtsov, Ruslan

The paper contains a framework for linking social protection with growth and productivity, an updated review of the literature, new original work filling in gaps in the available evidence, and a discussion of operational implications. The paper demonstrates that there was a shift in the economists'view on social protection, and now they are seen as a force that can make a positive contribution towards economic growth and reduce poverty. The paper looks at pathways in which social protection programs (social insurance and social assistance programs, as well as labor programs) can support better growth outcomes: (i) individual level (building and protecting human capital, and other productive assets, empowering poor individuals to invest or to adopt higher return strategies), (ii) local economy effects (enhancing community assets and infrastructure, positive spillovers from beneficiaries to non-beneficiaries), (iii) overall economy level (acting as stabilizers of aggregate demand, improving social cohesion and making growth?enhancing reforms more politically feasible). Most social protection programs affect growth through all of these pathways. But the evidence is very uneven; and there are knowledge gaps. The paper discusses operational implications for the design and implementation of Social Protection (SP) programs and proposes a work program for addressing knowledge gaps.

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File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2012/03/22/000333037_20120322011452/Rendered/PDF/676090NWP012030Box367885B00PUBLIC0.pdf
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Paper provided by The World Bank in its series Social Protection and Labor Policy and Technical Notes with number 67609.

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Date of creation: 01 Mar 2012
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Handle: RePEc:wbk:hdnspu:67609
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  1. Scarpetta, Stefano & Tressel, Thierry, 2004. "Boosting productivity via innovation and adoption of new technologies : any role for labor market institutions?," Policy Research Working Paper Series 3273, The World Bank.
  2. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 225-242.
  3. Norbert Schady, 2006. "Early Childhood Development in Latin America and the Caribbean," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 185-225, January.
  4. Jessica Erin Todd & Paul Winters & Tom Hertz, 2010. "Conditional Cash Transfers and Agricultural Production: Lessons from the Oportunidades Experience in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 39-67.
  5. Stefan Dercon & Pramila Krishnan, 2004. "Food Aid and Informal Insurance," Development and Comp Systems 0409026, EconWPA.
  6. François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling and Child Labor : Micro-Simulating Bolsa Escola," DELTA Working Papers 2003-07, DELTA (Ecole normale supérieure).
  7. Humberto López & Luis Servén, 2015. "Too Poor to Grow," Central Banking, Analysis, and Economic Policies Book Series, in: Ricardo J. Caballero & Klaus Schmidt-Hebbel (ed.), Economic Policies in Emerging-Market Economies Festschrift in Honor of Vittorio Corbo, edition 1, volume 21, chapter 13, pages 309-350 Central Bank of Chile.
  8. Eswar Prasad & Michael P. Keane, 2000. "Inequality, Transfers and Growth; New Evidence From the Economic Transition in Poland," IMF Working Papers 00/117, International Monetary Fund.
  9. Robalino, David A. & Rawlings, Laura & Walker, Ian, 2012. "Building social protection and labor systems : concepts and operational implications," Social Protection and Labor Policy and Technical Notes 67608, The World Bank.
  10. Gilligan, Daniel O. & Hoddinott, John & Taffesse, Alemayehu Seyoum, 2008. "The impact of Ethiopia's Productive Safety Net Programme and its linkages:," IFPRI discussion papers 839, International Food Policy Research Institute (IFPRI).
  11. Aterido, Reyes & Hallward-Driemeier, Mary & Pagés, Carmen, 2011. "Does Expanding Health Insurance Beyond Formal-Sector Workers Encourage Informality? Measuring the Impact of Mexico's Seguro Popular," IZA Discussion Papers 5996, Institute for the Study of Labor (IZA).
  12. Raj Chetty & Adam Looney, 2005. "Consumption Smoothing and the Welfare Consequences of Social Insurance in Developing Economies," NBER Working Papers 11709, National Bureau of Economic Research, Inc.
  13. Michael Hurd & Pierre-Carl Michaud & Susann Rohwedder, 2008. "Using International Micro Data to Learn about Individuals' Responses to Changes in Social Insurance," Working Papers 626, RAND Corporation.
  14. Emanuela Galasso & Martin Ravallion, 2004. "Social Protection in a Crisis: Argentina's Plan Jefes y Jefas," World Bank Economic Review, World Bank Group, vol. 18(3), pages 367-399.
  15. repec:ilo:esbook:ebook2 is not listed on IDEAS
  16. Pietro Garibaldi & Zuzana Brixiova, 1998. "Labor Market Institutions and Unemployment Dynamics in Transition Economies," IMF Staff Papers, Palgrave Macmillan, vol. 45(2), pages 269-308, June.
  17. Peracchi, Franco & Perotti, Valeria & Scarpetta, Stefano, 2007. "Informality and social protection : preliminary results from pilot surveys in Bulgaria and Colombia," Social Protection and Labor Policy and Technical Notes 41541, The World Bank.
  18. K. Subbarao, 1997. "Public Works as an Anti-Poverty Program: An Overview of Cross-Country Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 678-683.
  19. Lisa Pfeiffer & Alejandro López-Feldman & J. Edward Taylor, 2009. "Is off-farm income reforming the farm? Evidence from Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 125-138, 03.
  20. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
  21. Seth R. Gitter & Bradford L. Barham, 2008. "Women's Power, Conditional Cash Transfers, and Schooling in Nicaragua," World Bank Economic Review, World Bank Group, vol. 22(2), pages 271-290, May.
  22. Katia Covarrubias & Benjamin Davis & Paul Winters, 2012. "From protection to production: productive impacts of the Malawi Social Cash Transfer scheme," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(1), pages 50-77, March.
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