{"title":"Twenty Years of Wage Inequality in Latin America","authors":"Julián Messina, Joana Silva","doi":"10.1596/1813-9450-8995","DOIUrl":"https://doi.org/10.1596/1813-9450-8995","url":null,"abstract":"\u0000 This article documents an inverse U-shape in the evolution of wage inequality in Latin America since 1995, with a sharp reduction starting in 2002. The Gini coefficient of wages increased from 42 to 44 between 1995 and 2002 and declined to 39 by 2015. Between 2002 and 2015, the 90/10 log hourly earnings ratio decreased by 26 percent. The decline since 2002 was characterized by rising wages across the board, but especially at the bottom of the wage distribution in each country. Triggered by a rapid expansion of educational attainment, the wages of college and high school graduates fell relative to the wages of workers with only primary education. The premium for labor market experience also fell significantly. However, the compression of wages was not entirely driven by changes in the wage structure across skill groups. Two-thirds of the decline in the variance of wages took place within skill groups. Changes in the sectoral, occupational, and formal/informal composition of jobs matter for the process of reduction in inequality, but they do not fully account for the fall in within-skill variance. Evidence based on longitudinal matched employer-employee administrative data suggests that an important driver was falling wage dispersion across firms.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"158 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115936249","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On Promoting Fiscal Discipline: The Role of Exchange Rate Regimes, Fiscal Rules and Institutions","authors":"Kady Synthia Keita, Camélia Turcu","doi":"10.1596/1813-9450-8964","DOIUrl":"https://doi.org/10.1596/1813-9450-8964","url":null,"abstract":"This paper examines how fiscal rules, exchange rate regimes, and institutional quality affect the cyclical behavior of fiscal policy (how government spending responds to fluctuations in gross domestic product). The analysis is performed on a panel of 153 advanced, emerging, and developing countries over 1993-2015 using local Gaussian-weighted ordinary least squares and two-stage least squares estimators. The findings show that the adoption of fiscal rules alone is not sufficient to promote countercyclical fiscal policy and should be combined with strong institutions. Moreover, fiscal rules seem to limit procyclicality, especially in countries with flexible exchange rate regimes rather than in countries with fixed exchange rates. The analysis also finds that the disciplining effect of fiscal rules depends on the type of rule.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"2015 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114604516","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Jobs in Global Value Chains: New Evidence for Four African Countries in International Perspective","authors":"S. Pahl, M. Timmer, Reitze Gouma, Pieter Woltjer","doi":"10.1596/1813-9450-8953","DOIUrl":"https://doi.org/10.1596/1813-9450-8953","url":null,"abstract":"What is the potential for job growth in Africa under participation in global value chains (GVCs)? In this study the concept of GVC jobs is introduced which tracks the number of jobs associated with GVC production of goods. A novel decomposition approach is used to account for GVC jobs by three proximate sources: global demand for final goods, a country's GVC competitiveness (measured as the country's share in serving global demand) and technology (workers needed per unit of output). Based on newly assembled data, it is shown how GVC jobs and incomes have changed over the period 2000-14 in Ethiopia, Kenya, Senegal and South Africa, compared to developments in some other low- and middle-income countries in the world. The four African countries stand out in terms of a low share of GVC jobs in the (formal) manufacturing sector, and a relatively high share in agriculture due to strong backward linkages, especially in the case of food production. All countries benefitted highly from growing global demand for final goods. At the same time it appears that technical change in GVCs is biased against the use of labour, greatly diminishing the potential for job growth through GVC participation.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"2014 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114443611","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Casting a Shadow: Productivity of Formal Firms and Informality","authors":"M. Amin, Cédric Okou","doi":"10.1111/RODE.12697","DOIUrl":"https://doi.org/10.1111/RODE.12697","url":null,"abstract":"Using firm-level survey data for a large cross section of countries, the paper assesses the gap in labor productivity between formal and informal firms in developing countries for which comparable data are available. It also investigates the impact of competition from informal firms on the labor productivity of formal firms. The results show that on average, the labor productivity of informal firms is about one-fourth that of formal firms. Moreover, the labor productivity of formal firms that face competition from informal firms is about 75 percent of the average labor productivity of formal firms that do not experience informal competition. This suggests that competition from the informal sector can erode formal firms' market share and the resources available to boost productivity where formal firms shoulder the additional cost of regulatory compliance. These findings are robust to a range of firm and country characteristics as well as checks for endogeneity concerns.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"146 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132244705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Obolensky, A. Erman, J. Rozenberg, Jun Erik Maruyama Rentschler, Paolo Avner, S. Hallegatte
{"title":"Infrastructure Disruptions: How Instability Breeds Household Vulnerability","authors":"M. Obolensky, A. Erman, J. Rozenberg, Jun Erik Maruyama Rentschler, Paolo Avner, S. Hallegatte","doi":"10.1596/1813-9450-8902","DOIUrl":"https://doi.org/10.1596/1813-9450-8902","url":null,"abstract":"This review examines the literature on the welfare impacts of infrastructure disruptions. There is widespread evidence that households suffer from the consequences of a lack of infrastructure reliability, and that being connected to the grid is not sufficient to close the infrastructure gap. Disruptions and irregular service have adverse effects on household welfare, due to missed work and education opportunities, and negative impact on health. Calibrating costs of unreliable infrastructure on existing willingness to pay assessments, we estimate the welfare losses associated with blackouts and water outages. Overall, between 0.1 and 0.2 percent of GDP would be lost each year because of unreliable infrastructure -- electricity, water and transport.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"208 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121201436","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Johannes Michael Braese, Jun Rentschler, S. Hallegatte
{"title":"Resilient Infrastructure for Thriving Firms: A Review of the Evidence","authors":"Johannes Michael Braese, Jun Rentschler, S. Hallegatte","doi":"10.1596/1813-9450-8895","DOIUrl":"https://doi.org/10.1596/1813-9450-8895","url":null,"abstract":"This review examines the literature on the role of infrastructure in determining the productivity and competitiveness of firms. It shows that the existing evidence base is clear in concluding that reliable and high-quality infrastructure is a crucial foundation for enabling businesses to thrive. It demonstrates that the provision of electricity, transport, water, and telecommunications systems increases firm-level productivity. It also shows that providing infrastructure per se is not enough to boost productivity, unless it offers reliable service. Disruptions and irregular service have substantial adverse effects on firms, not least due to disrupted supply chains, underutilization of production capacity, and costly adaptation measures.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125933288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Estimating Poverty in India Without Expenditure Data: A Survey-to-Survey Imputation Approach","authors":"David Newhouse, Pallavi Vyas","doi":"10.1596/1813-9450-8878","DOIUrl":"https://doi.org/10.1596/1813-9450-8878","url":null,"abstract":"This paper applies an innovative method to estimate poverty in India in the absence of recent expenditure data. The method utilizes expenditure data from 2004-05, 2009-10, and 2011-12 to impute household expenditure into a survey of durable goods expenditure conducted in 2014-15. At the $1.90 per day international poverty line, the preferred model predicts a 2014-15 head- count poverty rate of 10 percent in urban areas and 16.4 percent in rural areas, implying a poverty rate of 14.6 percent nationally. The implied poverty elasticity with respect to growth in per capita Gross Domestic Product (GDP) is within the range of past experience, and states with higher gross domestic product growth saw greater predicted poverty reductions. In validation tests, the model's predictions perform comparably to the World Bank's current adjustment method when predicting for 2011-12 but they are far more accurate when predicting for 2004-05. Three alternative specifications give moderately higher estimates of poverty. The results indicate that survey-to-survey imputation, when feasible, is a preferable alternative to the current method used to adjust survey-based poverty estimates to later years.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117239504","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Employment Data in Household Surveys: Taking Stock, Looking Ahead","authors":"Sam Desiere, V. Costa","doi":"10.1596/1813-9450-8882","DOIUrl":"https://doi.org/10.1596/1813-9450-8882","url":null,"abstract":"Individual-level employment data have a wide range of applications. They are used to monitor labor markets and the Sustainable Development Goals, contribute to understanding and explaining socioeconomic conditions, and may help to design and inform labor market policies. This paper is relevant for academics and policy makers who want to understand the main survey design issues behind the collection of individual-level employment data in nationally representative household surveys and the implications for data quality, particularly for women and young people. The paper reviews four survey programs (Living Standards Measurement Study, Living Standards Measurement Study–Integrated Surveys on Agriculture, Labor Force Surveys, and Demographic and Health Surveys) in 14 developing countries. First, the paper reviews the Sustainable Development Goals to identify a core set of labor market indicators and briefly discusses the International Labour Organization's definitions of key concepts that shape these indicators. Second, it assesses whether the Sustainable Development Goals labor market indicators are captured in the reviewed surveys. Third, it takes stock of current approaches to collect employment data and discusses critical survey design features, such as the structure of the labor module and the wording of the questions. Fourth, the paper examines whether these survey design features are gender and age neutral. Data from the Living Standards Measurement Study–Integrated Surveys on Agriculture are used to illustrate these issues. The paper concludes by proposing short- and medium-term objectives to improve the data quality in the Living Standards Measurement Study–Integrated Surveys on Agriculture.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124163153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jun Rentschler, Martin Kornejew, Stéphane Hallegatte, Johannes Michael Braese, Marguerite Anne Beatrice Obolensky
{"title":"Underutilized Potential: The Business Costs of Unreliable Infrastructure in Developing Countries","authors":"Jun Rentschler, Martin Kornejew, Stéphane Hallegatte, Johannes Michael Braese, Marguerite Anne Beatrice Obolensky","doi":"10.1596/1813-9450-8899","DOIUrl":"https://doi.org/10.1596/1813-9450-8899","url":null,"abstract":"This study constructs a microdata set of about 143,000 firms to estimate the monetary costs of infrastructure disruptions in 137 low- and middle-income countries, representing 78 percent of the world population and 80 percent of the GDP of low- and -middle-income countries. Specifically, this study assesses the impact of transport, electricity, and water disruptions on the capacity utilization rates of firms. The estimates suggest that utilization losses amount to $151 billion a year -- of which $107 billion are due to transport disruptions, $38 billion due to blackouts, and $6 billion due to dryouts. Moreover, this study shows that electricity outages are causing sales losses equivalent to $82 billion a year. Firms are also incurring the costs of self-generated electricity, estimated to amount to $64 billion a year (including annualized capital expenditure). At almost $300 billion a year, these figures highlight the substantial drag that unreliable infrastructure imposes on firms in developing countries. Yet, these figures are likely to be under-estimates as neither all countries nor all types of impacts are covered.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"26B 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128064870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
George Joseph, Bushra Binte Alam, Anne Shrestha, Santanu Lahiri, Sophie Ayling
{"title":"An Assessment of Water, Sanitation and Hygiene Access in Bangladesh's Community Health Clinics","authors":"George Joseph, Bushra Binte Alam, Anne Shrestha, Santanu Lahiri, Sophie Ayling","doi":"10.1596/1813-9450-8924","DOIUrl":"https://doi.org/10.1596/1813-9450-8924","url":null,"abstract":"Adequate water, sanitation and hygiene (WASH) in health care facilities plays a critical role in ensuring improved health care utilization and reducing disease burden due to reinfection. WASH in health facilities is now gaining momentum with the new SDG targets that governments have vowed to meet. This goal calls for a baseline examination of existing WASH conditions in health facilities. Using data collected through a census of all community health clinics in Bangladesh, this paper presents an analysis of the state of WASH in Bangladesh's rural, public health facilities highlighting that the lack of functionality of WASH facilities is a widespread problem across the country. The paper also identifies priority areas for action when considering the prevalence of poverty and chronic undernutrition at the upazilla level.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115363443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}