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September 2019

Article

Designing labor market regulations in developing countries Updated

Labor market regulation should aim to improve the functioning of the labor market while protecting workers

Gordon Betcherman

Governments regulate employment to protect workers and improve labor market efficiency. But, regulations, such as minimum wages and job security rules, can be controversial. Thus, decisions on setting employment regulations should be based on empirical evidence of their likely impacts. Research suggests that most countries set regulations in the appropriate range. But this is not always the case and it can be costly when countries over- or underregulate their labor markets. In developing countries, effective regulation also depends on enforcement and education policies that will increase compliance.

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Designing labor market regulations in developing countries Updated

Labor market regulation should aim to improve the functioning of the labor market while protecting workers

Youth bulges are not a major factor explaining current levels of youth unemployment

Female labor force participation and development Updated

Improving outcomes for women takes more than raising labor force participation—good jobs are important too

Guest worker programs requiring employer sponsorship can expand global opportunity—and grant employers market power

More important than defining and measuring informality is focusing on reducing its detrimental consequences

Exposure to foreign trade raises the skill premium in countries with a large stock of educated workers and reduces it in others

Self-employment and poverty in developing countries Updated

The right policies can help the self-employed to boost their earnings above the poverty level and earn more for the work they do

Demographic and economic determinants of migration Updated

Push and pull factors drive the decision to stay or move

With rising international migration, how transferable are benefits, and how can transferability be increased?

Both general and age-specific policies are necessary to reduce youth unemployment in transition economies

Getting the incentives right for firms and workers should be the priority in the labor formalization agenda

Policies in developing countries to improve women’s access to paid work should also consider child welfare

The global fight against child labor might be better served by focusing less on existing laws and more on implementation and enforcement

Short-time work compensation schemes and employment Updated

Temporary government schemes can have a positive economic effect

Does a changing public sector workforce in the MENA region provide an opportunity for efficient restructuring?

Is the youth labor market bearing the brunt of the pandemic?

Parental leave and maternal labor supply Updated

Parental leave increases the family–work balance, but prolonged leave may have negative impacts on mothers’ careers

The transformations of the French labor market, 2000–2021 Updated

The workforce is now much better educated, but crises have magnified unemployment, underemployment, and low-income work

Encouraging women’s labor force participation in transition countries Updated

Government policies can stimulate female labor force participation if coherent and well thought-out

Low unemployment and high employment, but also low, volatile pay and high inequality characterize the Russian labor market

Enforcement improves legal compliance, but its impact on welfare is country specific and unclear

Trade liberalization and gender inequality Updated

Can free-trade policies help to reduce gender inequalities in employment and wages?

Family firms offer higher job security but lower wages than other firms

Jobs can change quickly from full- to part-time status, especially during economic downturns

Payroll tax cuts in developing economies might be beneficial to the formal sector, even when the informal sector is large

Impacts of GVCs depend on lead firms, specialization, skills, and institutions

How are minimum wages set? Updated

Countries set minimum wages in different ways, and some countries set different wages for different groups of workers

Despite increasing earnings and stronger institutions, inequality, informality, and low productivity persist

Rethinking the skills gap Updated

Better understanding of skills mismatch is essential to finding effective policy options

Negotiating work rules at the firm level instead of the industry level could lead to productivity gains

Why did labor’s share of income decline among low-skilled workers but increase among the high-skilled?

In transition economies, better property rights protection and rule of law enforcement can boost job creation and growth

Why restricting labor mobility can be counterproductive

Knowing which workers are displaced in restructuring episodes helps governments devise the right equity- and efficiency-enhancing policies

Welfare benefits are not a key determinant of migration

Beyond satisfactory average performances lies a strongly segmented labor market with long-term challenges

Although market failures mean employment protection is necessary, excessive protection can be counterproductive

Successful implementation of a statutory minimum wage depends on context, capacity, and institutional design

Migrant-sending countries can significantly benefit from the type of occupation chosen by return migrants

Remittances are closely linked to household fertility choices with consequences at the community and country level

Does formal work pay? Synthetic measurements of taxes and benefits can help identify incentives and disincentives to formal work

Harnessing the benefits of diversity is essential for encouraging entrepreneurship in the transition region

Gender gaps in wages and leadership positions are large—Why, and what can be done about it?

Restructuring and upskilling prevents job polarization but may leave countries vulnerable to routine-biased technical change

Fifteen years ago Austria was the “better Germany,” but it has failed to keep up over time

The labor market in India since the 1990s Updated

Despite higher output per worker and moderate unemployment, wages and job quality have not improved proportionately

Sexual harassment in the workplace Updated

The #MeToo movement brought heightened attention to sexual harassment and a search for new approaches to combat it

Unions and investment in intangible capital Updated

When workers and firms cannot commit to long-term contracts and capital investments are sunk, union power can reduce investment

Infrastructure constraints are major obstacles for working from home in developing countries

Does emigration increase the wages of non-emigrants in sending countries Updated

Emigration can increase the wages of non-emigrants, but may eventually lead to lower productivity and wage losses