Journal Issue: World Bank Research Observer, Volume 36, Issue 1
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Volume
36
Number
36(1)
Issue Date
2020-05-22
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Policies to Support Businesses through the COVID-19 Shock
(Published by Oxford University Press on behalf of the World Bank, 2021-02-18) Cirera, Xavier; Cruz, Marcio; Davies, Elwyn; Grover, Arti; Iacovone, Leonardo; Lopez Cordova, Jose Ernesto; Medvedev, Denis; Okechukwu Maduko, Franklin; Nayyar, Gaurav; Ortega, Santiago Reyes; Torres, Jesica
Relying on a novel dataset covering more than 120,000 firms in 60 countries, this paper contributes to the debate about policies to support businesses through the COVID-19 pandemic. While governments around the world have implemented a wide range of policy support measures, evidence on the reach of these policies, the alignment of measures with firm needs, and their targeting and effectiveness remains scarce. This paper provides the most comprehensive assessment to date of these issues, focusing primarily on developing economies. It shows that policy reach has been limited, especially for more vulnerable firms and countries, and identifies mismatches between policies provided and policies most sought. It also provides some indicative evidence regarding mistargeting of policies and their effectiveness in addressing liquidity constraints and preventing layoffs. This assessment provides some early guidance to policymakers on tailoring their COVID-19 business support packages and points to new directions in data and research efforts needed to guide policy responses to the current pandemic and future crises.
Simulating the Potential Impacts of COVID-19 School Closures on Schooling and Learning Outcomes
(Published by Oxford University Press on behalf of the World Bank, 2021-03-17) Azevedo, João Pedro; Goldemberg, Diana; Geven, Koen; Iqbal, Syedah Aroob
This paper presents simulations of the potential effect of COVID-19-related school closures on schooling and learning outcomes. It considers four scenarios—varying in both the duration of school closures and the effectiveness of any mitigation strategies being deployed by governments. Using data on 174 countries, the analysis finds that the global level of schooling and learning will fall substantially. School closures could result in a loss of between 0.3 and 1.1 years of schooling adjusted for quality, bringing down the effective years of basic schooling that students achieve during their lifetime from 7.8 years to between 6.7 and 7.5 years. Close to 11 million students from primary up to secondary education could drop out due to the income shock of the pandemic alone. Exclusion and inequality will likely be exacerbated if already marginalized and vulnerable groups, such as girls, ethnic minorities, and persons with disabilities, are more adversely affected by school closures. Students from the current cohort could, on average, face a reduction of $366 to $1,776 in yearly earnings. In present value terms, this amounts to between $6,680 and $32,397 dollars in lost earnings over a typical student's lifetime. Globally, a school shutdown of 5 months could generate learning losses that have a present value of $10 trillion. By this measure, the world could stand to lose as much as 16 percent of the investments that governments make in the basic education of this cohort of students. In the pessimistic and very pessimistic scenarios, cumulative losses could add up to between $16 and $20 trillion in present value terms. Unless drastic remedial action is taken, the world could face a substantial setback in achieving the goal of halving the percentage of learning poor by 2030.
Who on Earth Can Work from Home?
(Published by Oxford University Press on behalf of the World Bank, 2021-03-03) Garrote Sánchez, Daniel; Gomez Parra, Nicolas; Ozden, Caglar; Rijkers, Bob; Viollaz, Mariana; Winkler, Hernan
This paper reviews the emerging literature on which jobs can be performed from home and presents new estimates of the prevalence of such jobs based on the task content of occupations, their technology requirements and the availability of internet access by country and income groupings. Globally, one of every five jobs can be performed from home. In low-income countries, this ratio drops to one of every 26 jobs. Failing to account for internet access yields upward biased estimates of the resilience of poor countries, lagging regions, and poor workers. Since better paid workers are more likely to be able to work from home, COVID-19 is likely to exacerbate inequality, especially in richer countries where better paid and educated workers are insulated from the shock. The overall labor market burden of COVID-19 is bound to be larger in poor countries, where only a small share of workers can work from home and social protection systems are weaker. Across the globe, young, poorly educated workers and those on temporary contracts are least likely to be able to work from home and more vulnerable to the labor market shocks from COVID-19.
Replication Redux
(Published by Oxford University Press on behalf of the World Bank, 2020-11-28) Ozier, Owen
In 2004, a landmark study showed that an inexpensive medication to treat parasitic worms could improve health and school attendance for millions of children in many developing countries. Eleven years later, a headline in The Guardian reported that this treatment, deworming, had been “debunked.” The pronouncement followed an effort to replicate and re-analyze the original study, as well as an update to a systematic review of the effects of deworming. This story made waves amidst discussion of a reproducibility crisis in some of the social sciences. In this paper, I explore what it means to “replicate” and “reanalyze” a study, both in general and in the specific case of deworming. I review the broader replication efforts in economics, then examine the key findings of the original deworming paper in light of the “replication,” “reanalysis,” and “systematic review.” I also discuss the nature of the link between this single paper's findings, other papers’ findings, and any policy recommendations about deworming. Through this example, I provide a perspective on the ways replication and reanalysis work, the strengths and weaknesses of systematic reviews, and whether there is, in fact, a reproducibility crisis in economics.