Book

Employment in Crisis : The Path to Better Jobs in a Post-COVID-19 Latin America

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collection.link.40
https://openknowledge.worldbank.org/handle/10986/2148
collection.name.40
Latin America and Caribbean Studies
dc.contributor.author
Silva, Joana
dc.contributor.author
Sousa, Liliana D.
dc.contributor.author
Packard, Truman G.
dc.contributor.author
Robertson, Raymond
dc.date.accessioned
2021-05-06T17:55:19Z
dc.date.available
2021-05-06T17:55:19Z
dc.date.issued
2021-06-17
dc.date.lastModified
2021-10-21T15:34:32Z
dc.description.abstract
A region known for its volatility, Latin America and the Caribbean (LAC) has suffered severe economic and social setbacks from crises—including the COVID-19 pandemic. These crises have taken their toll on careers, wage growth, and productivity. Employment in Crisis: The Path to Better Jobs in a Post-COVID-19 Latin America provides new evidence on the effects of crises on the region’s workers and firms and suggests several policy responses that can bolster long-term and inclusive economic growth. This report has three key findings. First, crises lead to persistent employment losses and accelerate structural changes away from the formal sector. This change occurs more through reductions in the creation of formal jobs than through job destruction. Second, some workers recover from crises, while others are permanently scarred by them. Low-skilled workers can suffer up to a decade of lower earnings caused by crises, while high-skilled workers rebound fast, exacerbating the LAC region’s high level of inequality. Formal workers suffer smaller employment and wage losses in localities with higher rates of informality. And the reduced job flows caused by crises decrease welfare, but workers in localities with more job opportunities, whether formal or informal, bounce back better. Third, crises’ cleansing effects can increase efficiency and productivity, but these effects are dampened by the LAC region’s less competitive market structure. Rather than becoming more agile and productive during economic downturns, protected sectors and firms gain market share and crowd out others, trapping valuable resources. This report proposes a three-pronged mix of policies to improve the LAC region’s responses to crises: • Create a more stable macroeconomic environment to smooth the impacts of crises, including automatic stabilizers such as unemployment insurance and short-term compensation programs; • Increase the capacity of social protection and labor programs to respond to crises and coalesce these programs into systems that complement income support with reemployment assistance and reskilling opportunities; and • Tackle structural issues, including the lack of product market competition and the spatial dimension behind poor labor market adjustment—a “good jobs and good firms” agenda.
en
dc.identifier
https://documents.worldbank.org/en/publication/documents-reports/documentdetail/202971624006966893/employment-in-crisis-the-path-to-better-jobs-in-a-post-covid-19-latin-america
dc.identifier.isbn
978-1-4648-1672-7
dc.identifier.isbn
978-1-4648-1686-4
dc.identifier.isbn
978-1-4648-1692-5
dc.identifier.uri
http://hdl.handle.net/10986/35549
dc.publisher
Washington, DC: World Bank
dc.relation.ispartofseries
World Bank Latin America and Caribbean Studies;
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
CORONAVIRUS
dc.subject
COVID-19
dc.subject
PANDEMIC IMPACT
dc.subject
PANDEMIC RESPONSE
dc.subject
ECONOMIC SHOCK
dc.subject
FISCAL POLICY
dc.subject
ECONOMIC RECOVERY
dc.subject
LABOR MARKET
dc.subject
EMPLOYMENT
dc.subject
ECONOMIC GROWTH
dc.subject
ADJUSTMENT ASSISTANCE
dc.subject
GOVERNMENT INTERVENTION
dc.subject
PUBLIC EXPENDITURE
dc.subject
SOCIAL PROTECTION
dc.subject
COUNTERCYCLICAL POLICY
dc.subject
INCOME SUPPORT
dc.subject
LABOR MARKET ADJUSTMENT
dc.subject
RE-EMPLOYMENT ASSISTANCE
dc.title
Employment in Crisis
en
dc.title.subtitle
The Path to Better Jobs in a Post-COVID-19 Latin America
en
dc.type
Book
en
okr.date.disclosure
2021-06-17
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-1672-7
okr.identifier.report
160648
okr.language.supported
en
okr.language.supported
es
okr.region.administrative
Latin America & Caribbean
okr.region.geographical
Caribbean
okr.region.geographical
Latin America
okr.topic
Macroeconomics and Economic Growth :: Business Cycles and Stabilization Policies
okr.topic
Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Fiscal & Monetary Policy
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Social Protections and Labor :: Social Protections & Assistance
okr.unit
LCRCE Chief Economist for Latin America and Caribbean Region

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