Publication:
Bosnia and Herzegovina : Labor Market Update, The Role of Industrial Relations

Loading...
Thumbnail Image
Files in English
English PDF (17.34 MB)
295 downloads
English Text (467.87 KB)
261 downloads
Published
2005-12
ISSN
Date
2012-06-19
Author(s)
Editor(s)
Abstract
This report identifies recent developments in the labor market in Bosnia and Herzegovina and by focusing on industrial relations, aims to provide new policy insights. The report shows that there have also been some improvements in labor market outcomes over the last few years. Nonetheless, changes in the legal and regulatory framework could contribute further to the performance of the labor market. High wages compared to productivity in the formal sector, the large and growing share of workers in the informal sector who are not covered by social insurance, and persistent unemployment are the three key labor market challenges facing Bosnia and Herzegovina (BH) today. Prospects for growth in Bosnia and Herzegovina are too fragile and not sustainable unless systemic reforms are introduced and effectively implemented. The report is organized as follows. The overview presents a summary of the findings and recommendations of the report, while Chapter 1 assesses the structure of and trends in the labor market. Chapter 2 examines the effects of the different wage determination processes on earnings, and Chapter 3 reviews the regulatory and industrial relations framework. A review of the international experience with collective bargaining is included in Annex V of this report and can serve as the basis for future discussions among local stakeholders about reform directions for collective bargaining.
Link to Data Set
Citation
World Bank. 2005. Bosnia and Herzegovina : Labor Market Update, The Role of Industrial Relations. © World Bank. http://hdl.handle.net/10986/8461 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Key Characteristics of Employment Regulation in the Middle East and North Africa
    (World Bank, Washington, DC, 2010-07) Kuddo, Arvo; Angel-Urdinola, Diego F.
    This note provides a general background of the main features of labor regulation in the Middle East and North Africa (MENA) and benchmarks them against international best practices. The note compiles information on available labor laws and other legal acts concerning employment protection regulation. Within the broader scope of labor regulation, and in order to assure regional comparability, information collected focuses on key issues in the labor law associated with commencing or terminating employment and during the period of employment (including maternity benefits). The main sources the data are the World Bank doing business 2010 and International Labour Organisation (ILO) databank. This note is a tool to provide policymakers and international organizations with a regional diagnose of how labor regulation affects labor market outcomes in MENA and inform client governments about strategic approaches to employment creation through labor policy and reform. This activity comes as a response to regional priorities in the context of the Arab World Initiative (AWI). One of the six strategic themes of the AWI focuses explicitly on employment creation as a top priority. Part of the World Bank's mandate under the AWI is to inform client governments about strategic approaches to employment creation through labor policy and reform.
  • Publication
    Labor Market Institutions : A Review of the Literature
    (World Bank, Washington, D.C., 2012-11) Betcherman, Gordon
    This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Impacts studied are on living standards (employment and earnings effects), productivity, and social cohesion, to the extent that this has been analyzed. Strong and opposing views are held on the costs and benefits of labor market institutions. On balance, the results of this review suggest that, in most cases, the impacts of these institutions are smaller than the heat of the debates would suggest. Efficiency effects of labor market regulations and collective bargaining are sometimes found but not always, and the effects can be in either direction and are usually modest. Distributional impacts are clearer, with two effects predominating: an equalizing effect among covered workers but groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. While the overall conclusion is one of modest effects in most cases, this does not mean that impacts cannot be more dramatic where regulations are set or institutions operate in ways that exacerbate the labor market imperfections that they were designed to address.
  • Publication
    Azerbaijan : Enterprise Restructuring and Labor Redeployment, Volume 1, Main Report
    (Washington, DC, 2005-01) World Bank
    The main objective of this report is, first, to examine changes in the welfare and labor market status of workers in Azerbaijan, with concentration on large state-owned enterprises (SOEs) already displaced or which may be displaced because of enterprise restructuring and privatization. This includes identifying: a) dominant patterns in labor market behavior, b) changes in worker socioeconomic status in the wake of redundancy; and c) assistance received under enterprise social programs and other government social safety nets. Second, the study also explores patterns of job creation and job destruction, and the dynamics of labor demand, including any barriers to firm entry and growth. The study focuses largely on identifying informational and institutional gaps in elaborating a general labor redeployment program suitable for conditions in Azerbaijan. Suggestions for the introduction of labor redeployment activities and enterprise social plans are provided that would enable authorities to design relevant mitigating measures. The report concludes that findings indicate labor market interventions have great potential to improve labor market performance; however, whether or not this potential is realized depends on a number of factors, and numerous variables can intervene to affect the final outcome of their implementation. These include external factors such as stable macroeconomic conditions, a favorable investment climate with an enabling business environment, and a competitive product market. In addition, there are important internal factors: specifically, policy design and implementation. A significant share of the able-bodied population needs better employment opportunities, and state support is necessary to enhance workers' competitiveness in the labor market and assist job-seekers in their employment search.
  • Publication
    Job Creation in Mozambique : Is Labor Law Reform the Answer?
    (World Bank, Washington, DC, 2006-11) Ministry of Planning and Development, Mozambique; World Bank
    This paper analyzes the potential economic impact of changes to the labor laws proposed in 2006. The economic logic behind these reforms is reviewed, and the conditions under which the reforms could be expected to have the maximum impact on employment are isolated. Next, the experiences of selected developing countries which have undertaken similar reforms are reviewed, which showed the importance of initial conditions and economic trends outside of the labor market in ensuring a successful reform. Third, the main provisions of the proposed reforms are explained. The analysis concludes that given Mozambique s initial conditions, including strong demand from private sector employers for change, the scope of proposed reforms, and the potential for continued economic growth, the reforms should increase firms' profit margins, and as a result, a positive employment effect is possible in the medium term. The analysis also shows that although the reforms are deep compared with the starting point, even if reforms are enacted, Mozambique's labor market would still be classified as rigid by international benchmarks. The report concludes with a discussion of the possible social and poverty effect. In the short run, there is a danger of layoffs in some of the larger firms which had previously reported being overstaffed. If this happens, the poverty effect would certainly be negative in the short run. The concluding section notes that other countries have avoided these types of layoffs by introducing transition arrangements.
  • Publication
    Social Impact and Social Mitigation of Enterprise Restructuring : Implications for Croatia
    (World Bank, Washington, DC, 2012-01) Lytle, Paula F.
    This report provides an overview of social impact and social mitigation measures that have been addressed in World Bank supported enterprise restructuring programs in Europe and Central Asia. The focus is on lessons learned from the experience elsewhere in the region that could provide guidance to and policy options for Croatia in the on-going process of enterprise restructuring. The first stage of transition focused on the establishment of market-driven, private sector-oriented economies. In recent years, the requirements of European integration and accession have led to an emphasis on fiscal discipline. Closer attention has been paid to implicit subsidies such as budgetary credits, nonpayment of taxes and accumulation of tax arrears, transfers from off-budget funds, and government payment of guaranteed loans. European Union candidate countries have faced similar policy challenges in mitigating the impact of unemployment due to structural shifts in the economy.

Users also downloaded

Showing related downloaded files

  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    Taxes, Spending, and Equity: International Patterns and Lessons for Developing Countries
    (Washington, DC: World Bank, 2025-11-17) Wai-Poi, Matthew; Sosa, Mariano; Bachas, Pierre
    Taxes and public spending underpin the basic administration of government and finance the human capital and infrastructure investments needed for economic growth. They can also have a significant and immediate impact on poverty and inequality. The question of how public finance can support longer-term growth objectives while promoting equity has become even more important in recent years, given the high fiscal deficits and debt levels most countries emerged with in the aftermath of the COVID-19 pandemic. These included the increasing cost of debt and the need to restart environmentally sustainable growth while helping households address the learning losses and other social scars caused by the pandemic. This paper examines the global evidence on which households pay which taxes and who benefits from what spending, and critically, the net effect on different households across the income distribution. The aim is to identify the patterns and lessons that emerge for designing progressive fiscal policies. A global dataset of 96 countries is assembled, spanning all regions of the world and all national income levels, grounded in the Commitment to Equity (CEQ) approach to fiscal incidence.
  • Publication
    Direct and Indirect Impacts of Transport Mobility on Access to Jobs: Evidence from South Africa
    (Washington, DC: World Bank, 2025-11-12) Iimi, Atsushi
    Access to jobs is essential for economic growth. In Africa, unemployment rates are notably high. This paper reexamines the relationship between transport mobility and labor market outcomes, with a particular focus on the direct and indirect effects of transport connectivity. As predicted by theory, wages are influenced by the level of commuting deterrence. Generally, higher earnings are associated with longer commute times and/or higher commuting costs. Local accessibility is also important, especially for individuals with time constraints. Both direct and indirect impacts are found to be significant in South Africa, where job accessibility has been challenging since the end of apartheid. For the direct impact, the wage elasticity associated with commuting costs is significant. Returns on commute are particularly high for women. Local accessibility to socioeconomic facilities, such as shops and health services, is also found to have a significant impact, consistent with the concept of mobility of care. To enhance employment, therefore, it is crucial to connect people not only to job locations but also to various socioeconomic points of interest, such as markets and hospitals, in an integrated manner. This integration will enable individuals to spend more time working and commuting longer distances.
  • Publication
    Continental Drying: A Threat to Our Common Future
    (Washington, DC: World Bank, 2025-11-04) Zhang, Fan; Borja-Vega, Christian; Chandanpurkar, Hrishikesh Arvind; Famiglietti, James; Hogeboom, Rick; Namara, Regassa; Rasul, Zarif; Luengas-Sierra, Pavel; Rao, Deyu
    Grounded in new evidence from satellite data, “Continental Drying: A Threat to Our Common Future” presents the first global assessment of freshwater reserves over the past two decades. The findings expose an alarming trend of “continental drying,” a persistent long-term decline in freshwater availability across vast landmasses. Not only are droughts and deluges becoming more unpredictable, but the total amount of freshwater available for use has also significantly declined. Continental drying, driven by global warming, worsening droughts, and unsustainable water and land use, is a silent but accelerating crisis—largely unknown to the public—that reshapes the global water narrative. Continental drying raises profound risks. This report reveals new empirical evidence showing how freshwater depletion leads to major job losses, reduced incomes, wildfires, and biodiversity threats. In the long term, the combined effects of drying and warming could push societies toward a tipping point where damage accelerates rapidly and adaptation becomes increasingly difficult. Against the backdrop of continental drying, global water consumption rose by 25 percent between 2000 and 2019, with about a third of this increase occurring in regions already experiencing drying. Compounding the pressure, a substantial share of water use in drying regions remains inefficient. Continental Drying identifies hot spots where rising demand and declining supply converge and explores where and how water savings can be realized. This report recommends a three-pronged approach to address the crisis: managing demand, augmenting water supply, and improving water allocation. Five cross-cutting levers—strengthening institutions, reforming water tariffs and repurposing subsidies, adopting water accounting, leveraging data and technological innovations, and valuing water in trade—are essential for effective implementation and to attract private investment to finance the approach. Beyond water, addressing trade barriers, investing in education and skills development, and improving access to markets and financial services are critical for strengthening job and livelihood resilience amid a continental drying crisis.
  • Publication
    Kyrgyz Republic Country Climate and Development Report
    (Washington, DC: World Bank, 2025-11-03) World Bank Group
    This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.