03. Journals

2,963 items available

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http://hdl.handle.net/10986/2210

These are journal articles published in World Bank journals as well as externally by World Bank authors.

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Now showing 1 - 10 of 27

Mentoring Migrants for Labor Market Integration: Policy Insights from a Survey of Mentoring Theory and Practice

(Published by Oxford University Press on behalf of the World Bank, 2021-06-01) Bagnoli, Lisa ; Estache, Antonio

The vast majority of international migrants from developing countries are of working age. And yet, their integration in the formal local labor market of their host countries continues to be a challenge. This paper reviews the scope of mentoring programs as a more systematic policy instrument to facilitate the integration of migrants into the labor market. It synthesizes the multidisciplinary academic research on mentoring. The review highlights the diversity of outcomes indicators and the relevance of context in the choice of mentoring program design. Determinants of success include the personal characteristics of the mentee and of the mentor and the efforts to match them but also the efforts made to account for the human, institutional, financial, and political context in the overall design of programs. Despite the significant progress achieved in understanding the determinants of mentoring effectiveness, the survey shows that there are still many sources of uncertainty on the optimal design of mentoring programs. This justifies a research agenda in a field with growing and significant political and social prominence of direct relevance to both developed and developing countries.
Preschool Availability and Women’s Employment: Evidence from Indonesia

(The University of Chicago Press, 2021-04) Halim, Daniel ; Johnson, Hillary C. ; Perova, Elizaveta

While a large body of literature has documented positive impacts of institutional childcare on maternal labor supply, thinner evidence is available on whether childcare can also nudge women into better jobs in developing countries. We evaluate the impact of public preschool expansion in Indonesia on women’s labor supply and characteristics linked to the quality of their employment, including employment types, earnings, and hours. We rely on a triple difference approach exploiting variations in preschool availability over time and across districts, as well as preschool-age-eligibility cutoffs, in a panel dataset spanning over 20 years. We find strong positive impacts on employment—an additional public preschool per 1,000 children in the district increases women’s work participation by 9.1 percent. However, it is primarily driven by an increase in unpaid family work, typically in household farms or businesses. We do not find impacts on earnings or hours of work. These findings are likely explained by the modality of preschools in Indonesia: operating for only 3 hours per day, they are unlikely to enable women to secure a paid job outside the home with longer time commitments.
Education Systems and Foreign Direct Investment: Does External Efficiency Matter?

(Taylor and Francis, 2020-09-29) Miningoua, Elise Wendlassida ; Tapsoba, Sampawende Jules

This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, non-landlocked countries and countries in the low and medium human development groups.
Human Capital and Macroeconomic Development: A Review of the Evidence

(Published by Oxford University Press on behalf of the World Bank, 2020-07) Rossi, Federico

The role of human capital in facilitating macroeconomic development is at the center of both academic and policy debates. Through the lens of a simple aggregate production function, human capital might increase output per capita by directly entering in the production process, incentivizing the accumulation of complementary inputs, and facilitating the adoption of new technologies. This paper discusses the advantages and limitations of three approaches that have been used to evaluate the empirical importance of these channels: cross-country regressions, development accounting, and quantitative models. The key findings in the literature are reviewed and some of them are replicated using updated data. The bulk of the evidence suggests that human capital is an important determinant of cross-country income gaps, especially when its measurement is broadened to go beyond simple proxies of educational attainment. The paper concludes by highlighting policy implications and promising avenues for future work.
Persistent Misallocation and the Returns to Education in Mexico

(Published by Oxford University Press on behalf of the World Bank, 2020-06) Levy, Santiago ; López-Calva, Luis F.

Over the last two decades, Mexico has experienced macroeconomic stability, an open trade regime, and substantial progress in education. Yet average workers’ earnings have stagnated, and earnings of those with higher schooling have fallen, compressing the earnings distribution and lowering the returns to education. This paper argues that distortions that misallocate resources toward less-productive firms explain these phenomena, because these firms are less intensive in well-educated workers compared with more-productive ones. It shows that while the relative supply of workers with more years of schooling has increased, misallocation of resources toward less-productive firms has persisted. These two trends have generated a widening mismatch between the supply of, and the demand for, educated workers. The paper breaks down worker earnings into observable and unobservable firm and individual worker characteristics, and computes a counterfactual earnings distribution in the absence of misallocation. The main finding is that in the absence of misallocation average earnings would be higher, and that earnings differentials across schooling levels would widen, raising the returns to education. A no-misallocation path is constructed for the wage premium. Depending on parameter values, this path is found to be rising or constant, in contrast to the observed downward path. The paper concludes arguing that the persistence of misallocation impedes Mexico from taking full advantage of its investments in the education of its workforce.
The Spillovers of Employment Guarantee Programs on Child Labor and Education

(Published by Oxford University Press on behalf of the World Bank, 2020-02) Li, Tianshu ; Sekhri, Sheetal

Many developing countries use employment guarantee programs to combat poverty. This study examines the consequences of such employment guarantee programs for the human capital accumulation of children. It exploits the phased roll-out of India’s flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) to study the effects on enrollment in schools and child labor. Introduction of MGNREGA results in lower relative school enrollment in treated districts. It also finds that the drop in enrollment is driven by primary school children. Children in higher grades are just as likely to attend school under MGNREGA, but their school performance deteriorates. Using nationally representative employment data, the study finds evidence indicating an increase in child labor highlighting the unintentional perverse effects of the employment guarantee schemes for human capital.
Twenty Years of Wage Inequality in Latin America

(Published by Oxford University Press on behalf of the World Bank, 2019-12-06) Messina, Julian ; Silva, Joana

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.
Beyond Poverty Escapes—Social Mobility in Developing Countries: A Review Article

(Published by Oxford University Press on behalf of the World Bank, 2019-08) Iversen, Vegard ; Krishna, Anirudh ; Sen, Kunal

While social mobility in advanced economies has received extensive scholarly attention, crucial knowledge gaps remain about the patterns and determinants of income, educational, and occupational mobility in developing countries. Focusing on intergenerational mobility, we find that estimates often differ greatly for the same country, depending on the concept and measure of mobility used, on variable constructions and on the data set utilized. There is also wide variation in mobility across regions and social groups. We discuss data and income and other variable measurement challenges when agriculture and the informal sector absorb most of the workforce, and illustrate why occupational classifications and widely used mobility measures may perform less well in such settings. Factors beyond those featuring in the literature on advanced economies are plausible determinants of social mobility, particularly of what we call moderate and large ascents (and descents), in developing country contexts. We highlight the lack of in-depth understanding of the multiple and often localized hurdles to such more pronounced progress. Similar knowledge gaps exist for large descents, which give rise to particularly profound concerns in low-income settings. We report and touch on the implications of suggestive findings of a disconnect between educational and occupational mobility. Innovative research requires critical engagement with theory and with methodology, identification, and data challenges that may overlap or deviate notably from those encountered in advanced economies.
What Explains Uneven Female Labor Force Participation Levels and Trends in Developing Countries?

(Published by Oxford University Press on behalf of the World Bank, 2019-08) Klasen, Stephan

Rapid fertility decline, a strong expansion of female education, and favorable economic conditions should have promoted female labor force participation in developing countries. Yet trends in female labor force participation rates (FLFP) have been quite heterogeneous, rising strongly in Latin America and stagnating in many other regions, while improvements were modest in the Middle East and female participation even fell in South Asia. These trends are inconsistent with secular theories such as the feminization U hypothesis but point to an interplay of initial conditions, economic structure, structural change, and persistent gender norms and values. We find that differences in levels are heavily affected by historical differences in economic structure that circumscribe women's economic opportunities still today. Shocks can bring about drastic changes, with the experience of socialism being the most important shock to women's labor force participation. Trends are heavily affected by how much women's labor force participation depends on their household's economic conditions, how jobs deemed appropriate for more educated women are growing relative to the supply of more educated women, whether growth strategies are promoting female employment, and to what extent women are able to break down occupational barriers within the sectors where women predominantly work.
Spillover Effects of Tobacco Farms on the Labor Supply, Education, and Health of Children: Evidence from Malawi

(Oxford University Press, 2019-04-24) Xia, Fang ; Deininger, Klaus

Using data from the Living Standards Measurement Study in Malawi, we examine the spillover effects of tobacco farms on children’s labor supply, education, and health. To address potential endogeneity, the share of tobacco farms in a community is instrumented by the change in tobacco buyers following termination of the intermediate buyer system. We find that, as tobacco cultivation is labor-intensive, children in communities with more tobacco growers spend more time as casual laborers and are less likely to advance to the next grade. Adverse health effects, measured by the likelihood of suffering from illnesses related to green tobacco sickness, are estimated to be larger than previously documented. This affects not only “working-age” children but also children too young to work on tobacco farms. Moreover, exposure to large-scale tobacco cultivation is estimated to reduce the height-for-age z-score of children aged 6–60 months. These findings highlight the importance of raising awareness and taking measures to protect children against green tobacco.