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Labor markets in low and middle income countries : trends and implications for social protection and labor policies

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  • Cho, Yoonyoung
  • Margolis, David N.
  • Robalino, David A.

Abstract

This paper reviews labor market trends throughout the developing world, identifies issues and policy priorities across groups of countries, and derives implications for the World Bank's new social protection and labor strategy. Five key issues are identified: a high and growingshare of the labor force that is self?employed or working in household enterprises, exposure to income shocks with limited access to risk management systems, low female participation rates, high youth unemployment rates, and the need to manage migration flows and remittances. The paper then details a three pronged agenda based on providing incentives and conditions for work, improving the efficiency of job creation, and managing risks / facilitating labor market transitions. This suggests that the Bank should emphasize self?employment and entrepreneurship promotion, provision of skills and development opportunities, and facilitation of labor market transitions into and between jobs, while protecting workers from shocks and paying particular attention to youth.

Suggested Citation

  • Cho, Yoonyoung & Margolis, David N. & Robalino, David A., 2012. "Labor markets in low and middle income countries : trends and implications for social protection and labor policies," Social Protection Discussion Papers and Notes 67613, The World Bank.
    • Handle: RePEc:wbk:hdnspu:67613
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    2. Dewen Wang & Nithin Umapathi & Philip O'Keefe, 2013. "Eligibility Thresholds for Minimum Living Guarantee Programs : International Practices and Implications for China," World Bank Publications - Reports 17006, The World Bank Group.
    3. Gary Fields, 2012. "Challenges and policy lessons for the growth-employment-poverty nexus in developing countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    4. Sof'a Gallardo & Carlos Madeira, 2022. "The role of financial surveys for economic research and policy making in emerging markets," Chapters, in: Duc K. Nguyen (ed.), Handbook of Banking and Finance in Emerging Markets, chapter 36, pages 676-686, Edward Elgar Publishing.
    5. Selwaness, Irène & Zaki, Chahir, 2019. "On the interaction between exports and labor market regulation: Evidence from the MENA countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 24-33.
    6. Kluve, Jochen & Puerto, Olga Susana & Robalino, David A. & Romero, Jose M. & Rother, Friederike & Stöterau, Jonathan & Weidenkaff, Felix & Witte, Marc J., 2016. "Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review," IZA Discussion Papers 10263, Institute of Labor Economics (IZA).
    7. Daniel Rogger & Christian Schuster, 2024. "Manual de Analítica Gubernamental," World Bank Publications - Books, The World Bank Group, number 42471.
    8. Carlos Madeira, 2015. "Identification of Earning Dynamics using Rotating Samples over Short Periods: The Case of Chile," Working Papers Central Bank of Chile 754, Central Bank of Chile.
    9. repec:mth:ijafr8:v:8:y:2018:i:2:p:278-292 is not listed on IDEAS
    10. Colin Andrews & Mirey Ovadiya & Christophe Ribes Ros & Quentin Wodon, 2012. "Cash for Work in Sierra Leone : A Case Study on the Design and Implementation of a Safety Net in Response to a Crisis," World Bank Publications - Reports 13564, The World Bank Group.
    11. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    12. Guillermo Cruces & Gary S. Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Cross-country analysis," WIDER Working Paper Series wp-2015-110, World Institute for Development Economic Research (UNU-WIDER).
    13. Domelen, Julie van, 2012. "Togo : towards a national social protection policy and strategy," Social Protection Discussion Papers and Notes 89000, The World Bank.
    14. World Bank, 2012. "Resilience, Equity, and Opportunity [Capacidad de recuperación, equidad y oportunidades]," World Bank Publications - Reports 12648, The World Bank Group.
    15. Paula Cerutti & Anna Fruttero & Margaret Grosh & Silvana Kostenbaum & Maria Laura Oliveri & Claudia Rodriguez-Alas & Victoria Strokova, 2014. "Social Assistance and Labor Market Programs in Latin America : Methodology and Key Findings from the Social Protection Database," World Bank Publications - Reports 18938, The World Bank Group.
    16. Jochen Kluve & Susana Puerto & David Robalino & Jose Manuel Romero & Friederike Rother & Jonathan Stöterau & Felix Weidenkaff & Marc Witte, 2017. "Interventions to improve the labour market outcomes of youth: A systematic review of training, entrepreneurship promotion, employment services and subsidized employment interventions," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-288.
    17. Irène Selwaness & Chahir Zaki, 2015. "On the Interaction Between Trade Reforms and Labor Market Regulation: Evidence from the MENA Countries' Labor Markets," Working Papers 970, Economic Research Forum, revised Nov 2015.
    18. Julie van Domelen, 2012. "Togo : Towards a National Social Protection Policy and Strategy," World Bank Publications - Reports 19004, The World Bank Group.
    19. Guillermo Cruces & Gary Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Cross-country analysis," WIDER Working Paper Series 110, World Institute for Development Economic Research (UNU-WIDER).
    20. Robalino, David A. & Weber, Michael, 2013. "Designing and implementing unemployment benefit systems in middle and low income countries : key choices between insurance and savings accounts," Social Protection Discussion Papers and Notes 90348, The World Bank.
    21. David Margolis & David Robalino & Friederike Rother & David Newhouse & Mattias Lundberg, 2013. "Youth Employment : A Human Development Agenda for the Next Decade," World Bank Publications - Reports 17620, The World Bank Group.
    22. Rita Almeida & Larry Orr & David Robalino, 2014. "Wage subsidies in developing countries as a tool to build human capital: design and implementation issues," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    23. Saad, Suhaila & Mohamed Nor, Norashidah, 2018. "Health Expenditure and Economic Development in Low-and Middle-Income Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 181-189.
    24. Santini, Ziggi Ivan & Koyanagi, Ai & Tyrovolas, Stefanos & Haro, Josep M. & Fiori, Katherine L. & Uwakwa, Richard & Thiyagarajan, Jotheeswaran A. & Webber, Martin & Prince, Martin & Prina, A. Matthew, 2015. "Social network typologies and mortality risk among older people in China, India, and Latin America: A 10/66 Dementia Research Group population-based cohort study," Social Science & Medicine, Elsevier, vol. 147(C), pages 134-143.
    25. Michael Weber & David A. Robalino, 2013. "Designing and Implementing Unemployment Benefit Systems in Middle and Low Income Countries : Key Choices between Insurance and Savings Accounts," World Bank Publications - Reports 20142, The World Bank Group.

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    Keywords

    Labor Markets; Labor Policies; Banks&Banking Reform; Environmental Economics&Policies; Debt Markets;
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