Report

Mauritius Addressing Inequality through More Equitable Labor Markets

Show simple item record

collection.link.18
https://openknowledge.worldbank.org/handle/10986/2119
collection.name.18
Other Poverty Study
dc.contributor.author
World Bank Group
dc.date.accessioned
2017-12-18T22:46:09Z
dc.date.available
2017-12-18T22:46:09Z
dc.date.issued
2018-03-26
dc.description.abstract
Mauritius is often cited as one of the few African success stories, and with good reason. In the aftermath of independence (1968), this small island nation in the Indian Ocean seemed to be bound for economic failure because of its high poverty rate and numerous vulnerabilities, including high population growth, ethnic tensions, substantial unemployment, and an economy greatly dependent on the production of sugar for international markets. However, Mauritius was successful in diversifying the economy and accomplishing an unprecedented structural transformation.The Inclusiveness of Growth and Shared Prosperity report (World Bank 2015a) turned the spotlight on the expanding gap of inequality in household incomes that occurred between 2007 and 2012 and on the negative impact on poverty. The report estimates that the incidence of absolute poverty between 2007 and 2012 would have declined twice as quickly had growth been shared more widely and inequality not worsened. Building on these earlier findings, this study investigates the driving forces behind the growing income inequality and identifies policy levers that could mitigate and, in the long run, possibly reverse the upward trend.This study takes a comprehensive approach to the determinants of inequality by including the role of the choices of households and individuals, markets, and institutions. The report is structured as follows. Chapter one sets the stage by presenting stylized facts on the trends in household income inequality between 2001 and 2015, comparing these trends with trends in consumption inequality, and identifying the main culprit behind the rapidly rising inequality in household incomes, that is, household labor income. Chapter two supplies a set of descriptive trends of the two groups of factors, namely, household demographics and labor market forces, that contribute to changes in household laborincome and follows up with a decomposition exercise on changes in household labor income between 2001 and 2015.Because the analysis indicates that an unequal increase in female labor force participation and rising inequality in individual earnings are among the main contributors to the expanding inequality in household labor income, Chapter three takes a deep dive into the issue of gender inequality in the labor market. The chapter illustrates the gender gap in labor market participation, describes the differences in the activities of working women in the labor market relative to men, and concludes with a detailed analysis of gender gaps in wages separately in the public and private sectors. Chapter four resumes the main analysis of the drivers of increasing inequality in individual earnings. The chapter first presents stylized facts about overall inequality in wages and then separates out changes in inequality between and within groups defined by demographic characteristics. The chapter distinguishes the role of changes in prices (or wages) and the role of changes in the composition of the workforce in rising earnings inequality. The second part of the chapter is devoted to the analysis of the role of the main potential drivers of expanding earnings inequality. The possible candidates include the interaction of changes in labor supply and labor demand, giving rise to skills shortages or surpluses, and changes in labor market institutions, namely, remuneration orders (ROs). The chapter concludes with an analysis of an additional source of skills mismatches among the employed population, namely, education mismatches, and advances potential explanations for the coexistence of a substantial skills shortage, over education, particularly among youth, and a large share of highly educated youth among the unemployed.
en
dc.identifier.uri
http://hdl.handle.net/10986/29034
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
POVERTY
dc.subject
INEQUALITY
dc.subject
LABOR MARKET
dc.subject
WAGES
dc.subject
GENDER
dc.subject
LABOR FORCE PARTICIPATION
dc.subject
WOMEN IN LABOR FORCE
dc.subject
WAGE GAP
dc.subject
FOREIGN LABOR
dc.subject
MIGRANT LABOR
dc.subject
UNEMPLOYMENT
dc.title
Mauritius Addressing Inequality through More Equitable Labor Markets
en
dc.type
Report
en
okr.date.disclosure
2018-03-26
okr.doctype
Economic & Sector Work :: Other Poverty Study
okr.doctype
Economic & Sector Work
okr.docurl
http://documents.worldbank.org/curated/en/408771513151993900/Mauritius-Addressing-inequality-through-more-equitable-labor-markets
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b085431efe_1_0
okr.identifier.internaldocumentum
29266348
okr.identifier.report
122040
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/408771513151993900/pdf/122040-12-12-2017-14-23-31-MauritiusWEB.pdf
en
okr.region.administrative
Africa
okr.region.country
Mauritius
okr.topic
Gender :: Gender and Economic Policy
okr.topic
Gender :: Gender and Poverty
okr.topic
Poverty Reduction :: Employment and Shared Growth
okr.topic
Poverty Reduction :: Equity and Development
okr.topic
Poverty Reduction :: Inequality
okr.topic
Poverty Reduction :: Pro-Poor Growth
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Social Protections and Labor :: Work & Working Conditions
okr.topic
Social Protections and Labor :: Skills Development and Labor Force Training
okr.unit
Poverty and Equity Africa (GPV01)

Show simple item record



This item appears in the following Collection(s)