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[IWS] ILO: WORLD OF WORK 2014: DEVELOPING WITH JOBS [27 May 2014]

IWS Documented News Service

_______________________________

Institute for Workplace Studies-----------------Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor--------------------Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

This service is supported, in part, by donations. Please consider making a donation by following the instructions at http://www.ilr.cornell.edu/iws/news-bureau/support.html

 

International Labour Organization (ILO)

 

WORLD OF WORK 2014: DEVELOPING WITH JOBS [27 May 2014]

http://www.ilo.org/global/research/global-reports/world-of-work/2014/WCMS_243961/lang--en/index.htm

or

http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_243961.pdf

[full-text, 222 pages]

 

Executive Summary

http://www.ilo.org/global/research/global-reports/world-of-work/2014/WCMS_243962/lang--en/index.htm

or
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_243962.pdf

[full-text, 10 pages]

 

Press Release 27 May 2014

ILO: Countries investing in high quality jobs can make economic leaps

The ILO’s flagship report on the world of work shows, for the first time, that quality jobs can drive sustained growth in emerging and developing countries.

http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_244161/lang--en/index.htm

 

 

[excerpt]

Since the eruption of the financial crisis in 2008 much of the global policy debate

has focused on advanced economies and their ability to cope with the impacts

of the crisis. During this period, a major policy shift has taken place in developing

countries that has often gone unnoticed. Notably, in the face of the slowdown of

their exports to advanced economies, developing countries have been confronted

with the need to rebalance their economies and find new sources of economic

growth and job creation.

 

This report draws out the many lessons that can be learned from this policy

shift. First and foremost, it shows the considerable policy innovation among the

over 140 emerging economies and low-income countries which are examined. The

measures range from employment guarantee schemes to cash benefits for vulnerable

groups and policies to promote formal enterprises. Some of these are being

replicated throughout the developing world and have even had some attraction for

a number of the advanced economies most affected by the financial crisis.

Second, a key finding emerging from the report is that good quality jobs

matter for development. While it has long been argued that developing countries

should concentrate efforts on trade and investment liberalisation and infrastructure

spending, supported by external aid if needed, evidence presented in the

report shows that such policies will not yield development unless accompanied by

dedicated efforts to boost employment and decent work opportunities and tackle

working poverty. In countries where it was implemented, such a policy shift not

only helped development but also played a counter-cyclical role that helped attenuate

the impacts of the financial crisis.

 

Third, governments in developing countries have gained confidence and therefore

policy space. They have realised that there is no one size fits all solution to their

problems and that remedies that used to be advocated (though not always applied)

in industrialised countries are not necessarily what is required in a developing

country context. Renewed interest among developing countries in well-designed

employment regulation, minimum wages and social protection illustrate the point.

At the same time, huge challenges persist. Rising youth unemployment,

including among new graduates, stubbornly high employment informality and

significant income inequalities require urgent policy attention. In too many developing

countries, including some emerging economies that have significant institutional

capacity, core labour standards are not properly enforced. There are no

independent trade unions in some countries, and employer organisations cannot

operate effectively in other parts of the world.

 

In sum, “Developing with Jobs” highlights the relevance of the ILO’s mandate,

values and policy tools. It also demonstrates clearly why decent work and

social protection should be central goals in the post-2015 development agenda.

 

CONTENTS

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Excecutive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii

1. Introduction and structure of the report: Global context and employment and social trends in the developing world . . . . . . 1

Structure of the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Appendix A. Country classification used in the report . . . . . . . . . . . . . . . . . . . . . . 15

PART I. Jobs as drivers of development

2. Growth patterns in developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

A. Economic growth performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

B. The composition and nature of economic growth . . . . . . . . . . . . . . . . . . . . . . . . . 23

Appendix A. Econometric evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3. Employment patterns and their link

with economic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

A. Employment patterns in developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

B. Measures of job quality in developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

C. Quality jobs are drivers of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

4. Decomposing growth patterns: The roles of investment, consumption, government expenditure, exports and education . 51

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

A. Trends in growth composition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

B. Different patterns of growth: The examples of Brazil and China . . . . . . . . . 54

C. The role of human capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

PART II. Policies for developing with jobs

5. Productive transformation, decent work and development . . . . . . . 65

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

A. Productive transformation through economic and social upgrading . . . . 66

B. In pursuit of competitiveness: High road or race to the bottom? . . . . . . . . . 75

C. Concluding remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

6. Labour and social protection institutions: Recent trends and impact on development . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

A. Institutions and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

B. Labour institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

C. Labour and social institutions and informality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

D. Concluding remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

7. Social protection, living standards and economic development: Overview of trends and assessment of policies that work . . . . . . . . 109

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

A. Social protection in developing countries:

Emerging trends in spending and coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

B. Social protection policies in action:

Innovations and gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

C. Social protection and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

D. Concluding remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Appendix A. A typology of countries’ social protection strategies . . . . . . . . . . 140

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

8. Does income distribution matter for development? Trends in labour share of income and their economic impacts in developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

A. Why is it important to look at trends

in the share of labour in total income? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

B. Trends in the labour share of income

in developing countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

C. Adjusting the labour share for self-employment income . . . . . . . . . . . . . . . . . . 159

D. Economic impacts of changes

in the labour share of income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

E. Summary and policy implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Appendix A. Trends in the labour share of income (additional analysis) . . . 169

Appendix B. Methodologies to adjust the labour share

of income for self-employment income . . . . . . . . . . . . . . . . . . . . . . . . . 173

Appendix C. The Global Policy Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Appendix D. Economic impact analysis for five Latin American countries 175

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

9. International migration and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

A. Trends in international migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

B. Economic consequences of international migration . . . . . . . . . . . . . . . . . . . . . . . 187

C. Policy considerations: Leveraging labour migration

for growth and international development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Appendix A. Decomposing per capita GDP growth in a model with migration and human capital . . . . . . . . . . . . . . . . 196

Appendix B. Macroeconomic impact of remittances . . . . . . . . . . . . . . . . . . . . . . . . 199

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Recent publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

 

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 

 

 

 

 

 

 

 

 




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