Person:
Gatti, Roberta
Author Name Variants
Fields of Specialization
LABOR ECONOMICS,
POLITICAL ECONOMY,
SOCIAL INCLUSION,
ECONOMIC GROWTH
Degrees
External Links
Departments
MENA Chief Economist Office
Externally Hosted Work
Contact Information
Last updated
May 17, 2023
Biography
Roberta Gatti is the World Bank’s chief economist of the Middle East and North Africa region and former chief economist of the Human Development Practice Group, where she led the SDI and the Human Capital Index initiatives. She joined the World Bank in 1998 as a Young Professional in the Development Research Group. Her research includes theoretical and empirical contributions to labor and household economics, political economy, growth, and social inclusion. She has authored multiple World Bank flagship reports, including Jobs for Shared Prosperity and Being Fair, Faring Better. She has taught at Georgetown University and Johns Hopkins University.
Publication Search Results
1 - 10 of 12
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Publication
Individual Attitudes Toward Corruption : Do Social Effects Matter?
(World Bank, Washington, DC, 2003-08)Using individual-level data for 35 countries, the authors investigate the microeconomic determinants of attitudes toward corruption. They find women, employed, less wealthy, and older individuals to be more averse to corruption. The authors also provide evidence that social effects play an important role in determining individual attitudes toward corruption, as these are robustly and significantly associated with the average level of tolerance of corruption in the region. This finding lends empirical support to theoretical models where corruption emerges in multiple equilibria and suggests that "big-push" policies might be particularly effective in combating corruption. -
Publication
Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
(World Bank, Washington, DC, 2005-01)Although there is extensive literature on the determinants of child labor and many initiatives aimed at combating it, there is limited evidence on the consequences of child labor on socioeconomic outcomes such as education, wages, and health. The authors evaluate the causal effect of child labor participation on these outcomes using panel data from Vietnam and an instrumental variables strategy. Five years subsequent to the child labor experience, they find significant negative effects on school participation and educational attainment, but also find substantially higher earnings for those (young) adults who worked as children. The authors find no significant effects on health. Over a longer horizon, they estimate that from age 30 onward the forgone earnings attributable to lost schooling exceed any earnings gain associated with child labor and that the net present discounted value of child labor is positive for discount rates of 11.5 percent or higher. The authors show that child labor is prevalent among households likely to have higher borrowing costs, that are farther from schools, and whose adult members experienced negative returns to their own education. This evidence suggests that reducing child labor will require facilitating access to credit and will also require households to be forward looking. -
Publication
Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
(World Bank, Washington, DC, 2006-05)Although it is widely accepted that financial development is associated with higher growth, the evidence on the channels through which credit affects growth on the micro-level is scant. Using data from a cross section of Bulgarian firms, the authors estimate the impact of access to credit (as proxied by indicators of whether firms have access to a credit or overdraft facility) on productivity. To overcome potential omitted variable bias of OLS estimates, they use information on firms' past growth to instrument for access to credit. The authors find credit to be positively and strongly associated with total factor productivity. These results are robust to a wide range of robustness checks. -
Publication
Striving for Better Jobs : The Challenge of Informality in the Middle East and North Africa Region
(World Bank, Washington, DC, 2011-12)This quick note provides an overview of the World Bank report striving for better jobs: the challenge of informality in the Middle East and North Africa (MENA). The report was completed as a revolutionary wave of demonstrations and protests swept across the Arab world. Millions of young people were chanting 'dignity' and 'social justice' in the region, underlining deep-seated feelings of exclusion and inequality of opportunities. Demanding democracy, human rights, and better governance, young Arabs were also striving to realize their economic aspirations in a region rich in human and physical capital. However, while there has been economic growth for a number of years in MENA countries, this has not led to an adequate number of good jobs and has succeeded, at best, in generating low-quality, informal jobs. -
Publication
Labor Mobility in the Middle East and North Africa : Challenges and Opportunities
(World Bank, Washington, DC, 2010-09)Increased labor mobility bears large potential benefits for human development and poverty reduction through various channels including more competitive global labor markets and increased efficiency in the matching of skills supply and demand. Bank support for enhanced and better managed migration can complement broader efforts to reduce poverty and promote human development, similarly to how Bank projects on trade liberalization have helped in reducing market distortions and raise welfare. With Middle East and North Africa (MENA) countries becoming increasingly eager to adopt a proactive approach to improve migration outcomes, cross-sectoral Bank teams are well positioned to respond to increasing demand for migration management systems. Labor mobility has proven to be a forceful driver of convergence in living standards. Estimates suggest that gains from the liberalization of migration could surpass welfare gains from trade liberalization. Currently, migration represents the main form of global and regional integration for MENA countries. In the future, increased labor mobility could foster regional economic integration, a recognized priority within the Arab World Initiative (AWI). -
Publication
Striving for Better Jobs : The Challenge of Informality in the Middle East and North Africa
(World Bank, Washington, DC, 2014-08-26)Economic growth has been sustained for many years pre-crisis in the region, but this has not resulted in the creation of an adequate number of jobs and has succeeded, at best, in generating low-quality, informal jobs. The report addresses one margin of exclusion: informal employment and the vulnerabilities and lack of opportunities associated with it. The report analyzes the constraints that prevent informal workers from becoming formal and discusses policy options to effectively address these constraints. This report looks at informality through a human development angle and focuses particularly on informal employment. Informality is a complex phenomenon, comprising unpaid workers and workers without social security or health insurance coverage, small or micro-firms that operate outside the regulatory framework and large registered firms that may partially evade corporate taxes and social security contributions. The first section provides a detailed profile of informal workers in the region. The second section describes the characteristics of informality in micro-firms that operate outside the regulatory framework and in larger firms that do not fully comply with social security contribution requirements and tax obligations. The third section presents informality and the firm. The fourth section focuses on informality: choice or exclusion? The fifth section discusses policy options for effectively expanding coverage of health insurance and pension systems and promoting the creation of better quality jobs. -
Publication
A New State of Mind: Greater Transparency and Accountability in the Middle East and North Africa
(Washington, DC : World Bank, 2022-10-05)The MENA region is facing important vulnerabilities, which the current crises—first the pandemic, then the war in Ukraine—have exacerbated. Prices of food and energy are higher, hurting the most vulnerable, and rising interest rates from the global tightening of monetary policy are making debt service more burdensome. Part I explores some of the resulting vulnerabilities for MENA. MENA countries are facing diverging paths for future growth. Oil Exporters have seen windfall increases in state revenues from the rise in hydrocarbon prices, while oil importers face heightened stress and risk—from higher import bills, especially for food and energy, and the depreciation of local currencies in some countries. Part II of this report argues that poor governance, and, in particular, the lack of government transparency and accountability, is at the root of the region’s development failings—including low growth, exclusion of the most disadvantaged and women, and overuse of such precious natural resources as land and water. -
Publication
Overconfident: How Economic and Health Fault Lines Left the Middle East and North Africa Ill-Prepared to Face COVID-19
(Washington, DC: World Bank, 2021-10-07)This report examines the region’s economic prospects in 2021, forecasting that the recovery will be both tenuous and uneven as per capita GDP level stays below pre-pandemic levels. COVID-19 was a stress-test for the region’s public health systems, which were already overwhelmed even before the pandemic. Indeed, a decade of lackluster economic reforms left a legacy of large public sectors and high public debt that effectively crowded out investments in social services such as public health. This edition points out that the region’s health systems were not only ill-prepared for the pandemic, but suffered from over-confidence, as authorities painted an overly optimistic picture in self-assessments of health system preparedness. Going forward, governments must improve data transparency for public health and undertake reforms to remedy historical underinvestment in public health systems. -
Publication
Informality among Formal Firms : Firm-level, Cross-country Evidence on tax Compliance and Access to Credit
(World Bank, Washington, DC, 2008-01-01)The authors use firm-level, cross-county data from Investment Climate surveys in 49 developing countries to investigate an important channel through which informality can affect productivity: access to credit and external finance. Informality is measured as self-reported lack of tax compliance in a sample of registered firms that also answered questions on a large set of other characteristics. The authors find that more tax compliance is significantly associated with more access to credit both in OLS and in country fixed effects estimates. In particular, the link between credit and formality is stronger in high-formality countries. This suggests that firms' balance sheets are relatively more informative for financial institutions in environments where signal extraction is a less noisy process. The authors' results are robust to the inclusion of a wide array of correlates and to two-stage estimation. -
Publication
Reality Check: Forecasting Growth in the Middle East and North Africa in Times of Uncertainty
(Washington, DC: World Bank, 2022-04-11)The Middle East and North Africa economies face an uncertain recovery. The war in Ukraine presents significant challenges to the global economy and the MENA region. Inflationary pressures brought about by the pandemic are likely to be further exacerbated by the conflict. The potential for rising food prices is even higher, which is likely to hurt the wallets of the poor and vulnerable in the region. The COVID-19 pandemic continues to cast a shadow. As the latest variant sweeps over the region, countries grapple with a host of problems depending on initial conditions and policy priorities. The region, like the rest of the world, is not out of the woods yet. Vaccinations remain the effective path out of the pandemic, leading to lower hospitalizations and death rates. Testing helps curb the spread. During times of uncertainty, it is important to not be overconfident about the region’s growth prospects. Growth forecasts serve as a significant signpost for policymakers to chart a path forward. Over the last decade, growth forecasts in the MENA region have often been inaccurate and overly optimistic, which can lead to economic contractions down the road due to ebullient borrowing. There is considerable room for the region to improve its forecasts that are largely hindered by opaque data systems, growth volatility and conflict. The MENA region lags considerably in the timely production of credible statistics. A key finding of the report is that the best way to improve forecasters is to provide forecasters with as much good quality information as possible.