Journal Issue: World Bank Research Observer, Volume 34, Issue 2
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2
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Jobs and Land Use within Cities
(Published by Oxford University Press on behalf of the World Bank, 2019-08) Grover Goswami, Arti; Lall, Somik V.
Over the last century, the urban spatial structure of cities has transformed dramatically from a traditional monocentric configuration to varying forms of decentralized organization. This paper reviews theory and empirical evidence to understand the urban morphology of jobs and land use within a city. Our survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers have been accompanied by structural changes within the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments useful in closing the gap between equilibrium urban spatial structures and the optimal outcome.
Beyond Poverty Escapes—Social Mobility in Developing Countries
(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.
The Turnaround of the Swedish Economy
(Published by Oxford University Press on behalf of the World Bank, 2019-08) Heyman, Fredrik; Norback, Pehr-Johan; Persson, Lars
How can a country improve productivity growth in its business sector and reach its growth potential? Sweden during the 1970–2010 period can serve as an example to help other countries understand how to efficiently reform a business sector. In the 1990s, Sweden implemented a reform package that ignited a successful reorganization of a business sector that had faltered for decades. To understand the economic forces behind this process, the paper first surveys the industrial restructuring literature and then examine the reform package using Swedish matched plant-firm-worker data. The removal of barriers to growth for new and productive firms, as well as increased rewards for investment in human capital, were crucial to the success of Sweden's reforms. The paper also discusses how the reform experience of a developed country such as Sweden can be useful for developing countries that are in the process of transforming their business sectors. The findings suggest that policymakers have much to learn from country case studies and that the Swedish experience can be a valuable case study for developing countries that are attempting to promote growth by developing their business sectors.
Gender Matters in Economic Empowerment Interventions
(Published by Oxford University Press on behalf of the World Bank, 2019-08) Buvinic, Mayra; O'Donnel, Megan
Evidence shows that women face additional constraints because of their gender that affect their economic performance. A review of recent evaluation research demonstrates the types of gender-related constraints women face and the role that economic empowerment interventions can play in overcoming them, especially if they incorporate aspects of smart design, increasing their development impact. The evidence suggests that financial services and training programs are not gender-neutral and that specific design features can yield more positive economic outcomes for women by helping them overcome gender-related constraints. These features include savings and “Graduation” programs that increase women's economic independence, self-reliance and self-control, and the practice of repeated micro-borrowing that increases financial risk-taking and choice. “Smart” design also includes high-quality business management and jobs skills training, and stipends and other incentives in these training programs that address women's and young women's additional time burdens and childcare demands. Peer support may also help to increase financial risk-taking and confidence in business decisions. However, when social norms are too restrictive, and women are prevented from doing any paid work, no design will be smart enough. Subjective economic empowerment appears to be an important intermediate outcome for women that should be promoted and more reliably and accurately measured. Lastly, whenever possible, results should be sex-disaggregated and reported for individuals as well as households.