World Development Report 2013 The World Bank

1. Moving jobs to center stage

2. Main messages World Development Report 2013 The World Bank

3. Jobs challenges are huge The jobs challenge World Development Report 2013 The World Bank

4. A job does not always come with a wage The jobs challenge World Development Report 2013 The World Bank

5. South Asia, Africa, and East Asia and the Pacific face significant youth bulges • Alarming levels of youthidleness and unemployment Source: WDR 2013 team based on ILO data Source: WDR 2013 team The jobs challenge World Development Report 2013 The World Bank 5

6. I. Jobs are transformational Part I World Development Report 2013 The World Bank

7. Jobs get better with development Jobs are transformational World Development Report 2013 The World Bank

8. What is a job? The jobs challenge World Development Report 2013 The World Bank

9. Jobs drive development Jobs are transformational World Development Report 2013 The World Bank

10. Jobs take households out of poverty Source: Inchauste and others 2012 for the WDR 2013 Jobs and living standards 10

11. Earnings of others. Discrimination and uneven bargaining power can lead to distortions. • Household allocations. Female employment can change bargaining power, increase investments in children. • Poverty reduction. Jobs that reduce poverty can benefit society as well as individuals. Some jobs do more for living standards Jobs and social cohesion 11

12. Job creation and destruction happen everywhere Source: WDR 2013 team based on Bartelsman, Haltiwanger, and Scarpetta (2009), and Shiferaw and Bedi(2010). Jobs and productivity World Development Report 2013 The World Bank

13. The employment share of microenterprises is greater in developing countries Jobs and productivity 13

14. Agglomeration economies. Learning and imitation happens in cities, through knowledge spillovers, exchange of ideas and better matching; and in industrial clusters,throughspecialization, sharing of common services and coordination. • Global integration. Knowledge spillovers occur through international trade and participation in global value chains. • Environmental impacts. Some jobs impose a greater toll on natural resources. Some jobs do more for productivity Jobs and social cohesion 14

15. Jobs are correlated with civic engagement Active membership and lack of a Job Active membership and motivating Job Source: Wietzke and McLeod 2012 for the WDR 2013 Jobs and social cohesion 15

16. Georgia: Inequities in the Labor Market are Pronounced Jobs and social cohesion 16

17. Social identity. Jobs can affect the well-being of others by influencing values and behavior. • Networks. Jobs connect people. They may contribute to tolerance by increasing direct knowledge between people of different social and ethnic backgrounds. • Fairness. A perceived absence of fairness in access to job opportunities, beyond one’s own job, can undermine having a stake in society and create tensions. Some jobs do more for social cohesion Jobs and social cohesion 17

18. What are good jobs for development? Part II World Development Report 2013 The World Bank

19. Individual and social valuations of jobs often differ Valuing jobs 19

20. Some jobs do more for development Valuing jobs World Development Report 2013 The World Bank

21. A typology of jobs challenges Diverse jobs agendas 21

22. Agendas connected by the migration of workers Source: WDR 2013 team based on Özden and others (2011). Connected jobs agendas World Development Report 2013 The World Bank 22

23. Agendas connected by the migration of jobs • Where will China’s jobs in light manufacturing go as labor costs increase? • Manufacturing jobs have migrated – are services next? Source: WDR 2013 team based on data from the United Nations Industrial Development Organization. Connected jobs agendas World Development Report 2013 The World Bank 23

24. III. Policies through the jobs lens World Development Report 2013 The World Bank Part III

25. Three distinct layers of policies are needed Policies through the jobs lens World Development Report 2013 The World Bank

26. Fundamentals Jobs and social cohesion 26

27. Labor Market Institutions Revisited • Within a reasonable range labor market regulations have little impact on employment or productivity. • Limits of the “plateau” are not well established and vary with country institutional characteristics • new forms of voice are needed for those not in formal labor market • Productivity externalities happen in cities and clusters, implying that spatial negotiation can enhance coordination Labor policies revisited World Development Report 2013 The World Bank March 15 2012 27

28. Active Labor Market Programs • appropriateness and success vary by country challenge • can have positive impact but can only be part of the solution • Job search: high impact – but requires large wage sector and job availability • Wage subsidies: both actual but even more hidden costs can be substantial – need to be targeted very well • Public works: seldom are a bridge to permanent jobs • Training: mixed record, especially if provided self-standing Labor policies revisited World Development Report 2013 The World Bank March 15 2012 28

29. Combined work and training increases the success rates of programs Active Labor Market Programs – Training alone often has limited success Labor policies revisited World Development Report 2013 The World Bank March 15 2012 29

30. Social Insurance • Managing risks both outside (health, old-age) and inside (job transitions, disability from work) the labor market • Coverage often linked to labor market status – hence under-coverage is huge. Last financial crisis: only 15 percent of unemployment received insurance payments • Core question: how can coverage be expanded without creating disincentives – universal tax financing; expanding to informal sector on voluntary basis etc Labor policies revisited World Development Report 2013 The World Bank March 15 2012 30

31. Global partnerships for jobs • Rights and standards: pressure goes only so far • Further liberalizing investments, but managing the tradeoffs • Migration policies: toward bilateral agreements • Jobs are center stage, but where are the numbers? Beyond labor policies World Development Report 2013 The World Bank

32. Key policy questions addressed through the Report • But the 1st question is: what is a job? And the answer is not trivial The difficult questions World Development Report 2013 The World Bank

33. To download the World Development Report 2013: Jobs, its background papers, databases and explanatory videos, visit: http://www.worldbank.org/wdr2013 To continue the dialogue on what it takes to create good jobs for development join the interactive Jobs Knowledge Platform at: www.jobsknowledge.org Follow up World Development Report 2013 The World Bank