Publication:
Better Jobs in Central America : The Role of Human Capital

Loading...
Thumbnail Image
Files in English
English PDF (1.49 MB)
1,051 downloads
English Text (111.29 KB)
95 downloads
Published
2012-05
ISSN
Date
2012-12-06
Author(s)
Editor(s)
Abstract
The biggest challenge in terms of jobs in Central America is to create better conditions to stimulate more productive job creation in the context of a rapidly growing labor force. Overcoming this challenge will contribute to reducing poverty, inequality and social exclusion which are so entrenched in the Central American countries. To achieve this goal, Central America needs to address a two-pronged policy. First, the region must implement policies that help farmers and workers to move up the value chain, which means in some cases diversify the production structure by increasing the share of industry and services, and in other cases, it should improve the technological content and knowledge of existing activities to make them more productive (for example, agriculture). The paper is organized as follows: Section II describes the origin of the recent growth of the region and its impact on the labor market. Section III discusses the challenges of human capital faced by the region, and Sections IV and V provide governments with policy options for consideration.
Link to Data Set
Citation
World Bank. 2012. Better Jobs in Central America : The Role of Human Capital. © World Bank. http://hdl.handle.net/10986/11924 License: CC BY 3.0 IGO.
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
    Labor Markets for Inclusive Growth
    (Washington, DC, 2013-04) World Bank
    This policy note outlines short, and medium-term policy options for addressing critical challenges affecting labor markets in Mexico, and in particular labor productivity. As labor is the main source of income for most of the population, poverty is closely linked to underemployment and low wages. Yet labor markets have played a limited role in poverty reduction in Mexico. Labor income accounted for just 22 percent of the decline in poverty in Mexico over the last decade compared with 38 percent in the rest of the region. Between the third quarter of 2008 and the third quarter of 2011, the labor income poverty index2 continued to decline in Brazil, Ecuador, and Peru but increased in Mexico. The equivalent measure produced by CONEVAL (Consejo Nacional de Evaluation), shows the labor poverty trend to be increasing through the first quarter of 2012. Finding the right bundle of policies to improve labor productivity and the functioning of the labor markets can serve to improve economic growth and welfare outcomes.
  • Publication
    Europe 2020
    (World Bank, Washington, DC, 2011-03) World Bank
    This technical note highlights some of the work the World Bank has recently conducted in support of the growth agenda outlined in the Europe 2020 strategy. The World Bank is actively supporting the new member states, as well as accession and neighborhood countries, in achieving the Europe 2020 targets of smart, sustainable, and inclusive growth. The engagement consists of policy and program lending in these areas as well as analytical work. This note focuses on highlighting some of the Bank's analytical Europe 2020 work pertaining to raising employment rates and skills levels as well as to spur innovation and technology absorption. The technical note is structured as follows: section one provides the macroeconomic background, and highlights how the economies of the European Union (EU)-10 countries were steadily catching up with those of the EU-15 countries, but then the catching-up was interrupted by the onset of the global financial and economic crisis. Section two focuses on low employment rates in EU-10 countries, particularly among older and less-educated workers, women, and minority groups, in particular Roma, and highlights some key issues in the organization of labor markets and labor market related institutions. Section three focuses more specifically on skills development across the life cycle, with a brief discussion on selected policy areas: (1) expansion of early childhood development programs to universal coverage; (2) adopting ambitious, comprehensive approaches to schooling to support higher levels of generic skills for all; and (3) strengthening access to and efficiency of tertiary education through higher education financing reform and data collection as a basis for system steering. Section four focuses on innovation and technology absorption, highlighting how more and more efficient research and development (R&D) spending will boost economic growth in EU10 countries.
  • Publication
    Reclaiming their Voice : New Perspectives From Young Women and Men in Upper Egypt
    (Washington, DC, 2012-06) World Bank
    This study examines the demographic, socioeconomic, and cultural circumstances of young men and young women (aged 15-29) in Upper Egypt. Where appropriate, comparison is made with the rest of the country. It explores the perceptions of young men and women regarding the challenges and opportunities they face as they attempt to gain access to education, employment, services, and civic engagement. More broadly, the study explores their views on the factors that facilitate or limit their inclusion in the society and economy of Upper Egypt. This report focuses on two main transitions of young Upper Egyptians: the transition from school to work, and the transition to active citizenship and civic engagement. The study also briefly considers young people's engagement in the January 25th Revolution and their aspirations for the future in its aftermath. It concludes by offering recommendations for youth-inclusive policies that could expand the scope of employment and participation opportunities currently available to young people. The focus of the study being on Upper Egypt, it does not examine comprehensively the implications of youth employment and participation for Egyptian society as a whole. In its analysis of gender, the study analyses the dimension of access to education, but does not attempt to explore the issue of gender segregation in educational specialization. The report is consists of five chapters. Chapter two focuses on the transition from school to work, examining educational attainment, labor force participation, unemployment, joblessness, and gender issues. It also briefly considers youth entrepreneurship and involvement in agriculture. Civic engagement is the focus of chapter three, which presents young people's understanding of civic engagement and constraints to community participation. Chapter four considers young people's involvement in the January 25th Revolution. Conclusions and policy recommendations reflecting young people's aspirations for the future are discussed in chapter five.
  • Publication
    The Skills Road : Skills for Employability in Uzbekistan
    (World Bank, Washington, DC, 2014-09) Abdulloev, Ilhom; Audy, Robin; Hut, Stefan; de Laat, Joost; Kheyfets, Igor; Larrison, Jennica; Nikoloski, Zlatko; Torracchi, Federico; Ajwad, Mohamed Ihsan
    This report addresses a fundamental question facing policymakers in Uzbekistan: are worker skills hindering employment outcomes? The main finding of the report is that, indeed, worker skills gaps are hindering employment outcomes in Uzbekistan. In fact, employers—particularly formal sector employers—seek workers who possess both cognitive and non-cognitive skills. The higher employability and higher wage rates among higher skilled workers is mostly explained by the use of those skills in workplaces. But, skills gaps persist, leading a large share of employers to report shortages of high-skilled workers. These shortages are resulting in high wage premiums—tertiary graduates earn on average 55 percent more than similar workers with a general secondary education. However, large variations in observed skills among adults with the same level of educational attainment indicate that formal education is failing too many people. The report outlines weaknesses in the way skills are formed in Uzbekistan. While skills are developed during different stages in the life cycle and a host of actors are involved—families, for example, play a central role—the education and training system has a mixed record in skill formation. The report argues that the government could do more to align the skills imparted through the education and training system with the needs of employers. The government can also do more to get children off to the right start by investing in early childhood development, where rates of return to investment are generally very high and important soft skills are learned. Finally, more can be done to match the supply of skills with employer demand by improving the use of information in matching skills to jobs in the labor market.
  • Publication
    The Skills Road : Skills for Employability in Tajikistan
    (World Bank, Washington, DC, 2014-09) Hut, Stefan; Abdulloev, Ilhom; Audy, Robin; de Laat, Joost; Kataoka, Sachiko; Larrison, Jennica; Nikoloski, Zlatko; Torracchi, Federico; Ajwad, Mohamed Ihsan
    This report addresses a fundamental question facing policy makers in Tajikistan: is the current level of worker skills hindering employment outcomes? Using a unique household survey, the study finds that skills are valued in Tajikistan’s labor market, yet skills gaps persist. Jobs have been created in more knowledge-intensive occupations and in the service sector as opposed to the more traditional manual jobs, and employment outcomes are stronger for workers with better skills. Analysis of worker skills shows that workers with better cognitive and non-cognitive skills are typically more likely to have the highly sought-after formal sector jobs; and in fact make more frequent and intense use of mathematics and reading skills on the job. Furthermore, workers with better non-cognitive skills tend to become supervisors. The study finds that there are large variations in observed skills among those with the same level of educational attainment, indicating that formal education is failing too many people even though skills are developed during different stages in the life cycle and a host of actors are involved—families, for example, play a central role. The report’s conclusion is that the government could shift the focus from providing access to educational institutions and instead focus on providing the skills (cognitive, non-cognitive, and technical) students need to succeed as adults. The government can also do more to get children off to the right start by investing in early childhood development programs, where rates of return to investment are generally very high and important soft skills are learned. Finally, more can be done to match worker skills with employer demand by improving the use of information in matching skills to jobs in the labor market.

Users also downloaded

Showing related downloaded files

  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises
    (Washington, DC: World Bank Group, 2013-10-28) World Bank; International Finance Corporation
    Eleventh in a series of annual reports comparing business regulation in 185 economies, Doing Business 2014 measures regulations affecting 11 areas of everyday business activity: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business, Employing workers. The report updates all indicators as of June 1, 2013, ranks economies on their overall “ease of doing business”, and analyzes reforms to business regulation – identifying which economies are strengthening their business environment the most. The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. Doing Business is a flagship product by the World Bank and IFC that garners worldwide attention on regulatory barriers to entrepreneurship. More than 60 economies use the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 870 articles in peer-reviewed academic journals since its inception.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • 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
    World Development Report 2011
    (World Bank, 2011) World Bank
    The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.