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Labor and Social Protection

Equipping Kazakhstan’s future workforce

Aliya Bizhanova's picture
Kazakhstan has embarked on several policy and institutional initiatives aimed at closing skill gaps and improving work force productivity.
Kazakhstan is embarking on several policy and institutional initiatives aimed at closing skill gaps and improving work force productivity. Photo: Maxim Zolotukhin / World Bank

Do you remember how you felt when you graduated from high-school or college? Like me, you probably experienced some uncertainty and anxiety about what comes next, asking questions such as: “Will I get a job, and if so, where? And am I fully equipped to compete in the workforce?”

Indeed, these are important questions for many graduates entering the labor market in my country, Kazakhstan, where strong economic growth over the last decade has exposed some major skill gaps in the workforce.

Understanding value chains to drive job growth

Maria Laura Sanchez Puerta's picture

 

Several new tools are helping DFIs measure the impact of the private sector investments on jobs.
Several new tools are helping development finance institutions measure the impact of the private sector investments on jobs. Photo: Salahaldeen Nadir / World Bank


Let’s Work, a global partnership of over 30 organizations, is piloting tools that can help Development Finance Institutions (DFIs) measure the impact of private sector investments on jobs. The aim is for DFIs to not only measure jobs in the same consistent way, but also along the same nuanced dimensions: number of jobs gained, the quality of those jobs, and who gets those jobs (inclusiveness).  One of the measurement methods being developed by the Partnership is the Jobs in Value Chains Survey tool.
 

Weekly links February 17: Don’t give up on your research ideas but do give up on unwarranted policy recommendations

David Evans's picture
 
  • Chris Blattman provides an incentive to delay giving up on that great research idea you’ve been peddling for years in this story from the EconTalk podcast: For years, he pitched random African factory owners the idea of an RCT of factory employment. “They’d usually look at me kind of funny. They wouldn’t leap at the possibility. I was just this person they met on a plane.” One day it worked, and six weeks later he was randomizing applicants.

Three misconceptions in the way of better housing policies

Luis Triveno's picture
Photo by Dominic Chavez / World Bank

​While the need for housing is widespread, individually people have different needs—depending on whether they are single, married, senior citizens, families with children, or members with disabilities. Despite the best of intentions of policymakers, "a roof overhead" remains an elusive goal for a large majority of the world’s people. Most households cannot afford even the cheapest house that fits their needs and qualifies as “decent,” and no government alone can close this gap with subsidies. Nor are we on track to build the 300 million new houses needed to close the housing gap by 2030.

What’s missing? At least three misconceptions stand in the way of better housing policies: 
 

All I need is the air that I breathe…

Anna Gueorguieva's picture

Also available in: 中文

Photo by Jens Schott Knudsen via Flickr CC

Recent research shows that air quality affects the productivity of high-skilled workers. What does this mean for developing cities?

City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.

Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.

The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.

10 Knowledge Products from Sub-Saharan Africa You Don’t Want to Miss

Daniella Van Leggelo-Padilla's picture
Examine, evaluate, analyze, and explore… The World Bank Group’s comprehensive research, reports, and knowledge products do just that, providing policy makers and stakeholders from all sectors across Africa access to reliable evidenced-based data to assist in their decision-making processes.

Trade has been a global force for less poverty and higher incomes

Ana Revenga's picture

In the ongoing debate about the benefits of trade, we must not lose sight of a vital fact. Trade and global integration have raised incomes across the world, while dramatically cutting poverty and global inequality. 

Within some countries, trade has contributed to rising inequality, but that unfortunate result ultimately reflects the need for stronger safety nets and better social and labor programs, not trade protection.

Looping in local suppliers rather than forcing out international firms

Anabel Gonzalez's picture



An instructor at the Savar EPZ training center in Dhaka, Bangladesh, helps young women being trained to make shirts. Photo Credit: © Dominic Chavez/The World Bank


Increasing economic prosperity for developing countries is related not only to rising trade, but also – and more important – to transforming the traditional composition of what they produce and export. In the world today, many developing countries strive to diversify away from exporting commodities toward higher-value-added goods and services.

The evolution of trade and investment flows over the last three decades shows that foreign direct investment (FDI) can be a powerful driver of exports, a creator of well-paid new jobs and a crucial source of financing. More important, FDI may become a very rapid and effective engine to promote the transfer of technology, know-how and new business practices, helping to raise productivity and setting a country on the course of convergence. This is particularly the case of efficiency-seeking FDI – that is, FDI that locates productive processes in a country seeking to enhance its ability to better compete in international markets-.
 
The benefits of FDI are further leveraged when local firms can catalyze the presence of foreign investors to connect to global and regional value chains (GVCs). As a result of new international firms investing in a host country, great new opportunities arise for local enterprises to supply the inputs – be it goods or services – that their international counterparts need.

This has been the experience of Bangladesh, where local suppliers have grown in tandem with foreign investors in the garment sector. It is through linkages with international investors that local firms can gradually be lured into producing new goods and services that, until then, were not produced in the host country.  This is how economic diversification and greater value added are generated.

Multinational enterprises (MNEs) and their key partners (Tier 1 suppliers) are generally keen to source locally if a competitive local supplier can be found. However, they are also reluctant to absorb high search-and-find costs, and they will typically not invest in assisting local suppliers with upgrading efforts. Likewise, local firms are generally keen to supply to foreign firms, but are often not ready to make the necessary investments in technology and in processes to meet strict quality standards without a clear line of sight on potential payoff for such investment.

Making the World Bank Group LGBTI friendly, one step at a time

Caroline Vagneron's picture

The business case for greater diversity and inclusion of Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) staff is now well documented, and the corporate world is making solid progress towards LGBTI equality at the workplace. The message is also slowly but surely sinking into international organizations such as the World Bank Group, for which diversity is also synonymous with greater productivity, collaboration, innovation and creativity. In particular, LGBTI-supportive policies are linked to less discrimination against LGBTI employees and more open corporate cultures. Less discrimination and more openness (or less concealment), in turn, are also linked to greater job commitment, improved workplace relationships, improved health outcomes (concealment of sexual orientation is associated with increased psychological distress) and increased productivity among LGBTI employees.

In Russia, the effects of business regulations depend on differing implementation capacity

Alvaro Gonzalez's picture
 
Enforcing labor laws can impact firms' hiring decisions. Photo: Tomislav Georgiev / World Bank

"Writing laws is easy, but governing is difficult," wrote Leo Tolstoy in War and Peace. We agree.

Our recently finished study highlights how differences in the enforcement of a strict labor code across Russia’s numerous administrative regions has affected hiring and firing decisions. More specifically, we examine how the varying capacity to enforce the labor code affected labor adjustment by firms in response to industry-wide surges and slumps.


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