Johansson, SaraRevenga, AnaPaci, PierellaRijkers, Bob2012-08-132012-08-132010-11https://hdl.handle.net/10986/10142Although economic crises are difficult to predict, their recurrence is a salient feature of emerging market economies. Nevertheless, many developing countries continue to lack an effective policy infrastructure that can mitigate the impacts of economic downturns on employment opportunities without affecting long-term growth prospects. This was painfully highlighted by the hasty reactions implemented by many countries in response to the global downturn of 2008-09, and by the ad hoc and reactive nature of many of the policies implemented. The weak ability of governments to systematically foresee, monitor, and offset adverse labor market impacts of economic downturn is of particular concern in developing countries where poverty incidence is high and labor is typically the only asset for the majority of the population. The main objectives of this note are: 1) to highlight the need for policies that limit earnings volatility; 2) to guide policy makers through the challenges inherent in crafting effective and comprehensive policy packages.CC BY 3.0 IGOACCESS TO FINANCINGACTIVE LABORACTIVE LABOR MARKETACTIVE LABOR MARKET POLICIESACTIVE LABOR MARKET PROGRAMSACTIVE LABOURACTIVE LABOUR MARKETACTIVE LABOUR MARKET POLICIESAGGREGATE PRODUCTIVITYALLOCATIONALLOCATION OF RESOURCESBALANCE SHEETBANKRUPTCYBANKRUPTCY LAWSBULLETINBUSINESS CYCLEBUSINESS CYCLESCAPSCASH TRANSFERCASH TRANSFERSCATALYSTSCHILD HEALTHCLIMATECREATIVE DESTRUCTIONCREDIT CONSTRAINTSCREDIT MARKETCREDIT MARKETSCREDIT POLICIESCRISESDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISMISSALECONOMIC CRISESECONOMIC DOWNTURNSECONOMIC RECOVERYECONOMIC SHOCKSEFFECTIVE POLICIESEMPLOYABILITYEMPLOYMENTEMPLOYMENT LEVELSEMPLOYMENT TRENDSEXPORT GROWTHEXPORTERSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL MARKETSFIRM ENTRYFORGIVENESSFORMAL SECTOR WORKERSFUEL PRICESFUTURE GROWTHGLOBAL EFFORTGLOBAL TRADEGLOBALIZATIONGOVERNMENT INTERVENTIONSHOUSEHOLD ENTERPRISEHOUSEHOLD INCOMEHUMAN CAPITALIMPORT SUBSTITUTIONINCENTIVE PROBLEMSINCOMEINCOME GROWTHINNOVATIONINSTITUTIONAL CAPACITYINSTRUMENTINSURANCEINSURANCE MECHANISMSINTERNATIONAL DEVELOPMENTINVENTORIESINVESTMENT CLIMATEJOB CREATIONJOB DESTRUCTIONJOB SEARCHJOB SEARCH ASSISTANCEJOB SEARCH ASSISTANCE SCHEMESJOB-SEARCH ASSISTANCEJOBSJOBS CRISISLABOR DEMANDLABOR INTENSITYLABOR MARKETLABOR MARKET ADJUSTMENTLABOR MARKET INDICATORSLABOR MARKET INFORMATIONLABOR MARKET INFORMATION SYSTEMSLABOR MARKET OUTCOMESLABOR MARKET POLICIESLABOR MARKET REGULATIONSLABOR MARKETSLABOURLACK OF INFORMATIONLIMITED RESOURCESLIVING STANDARDSLOANLONG-TERM COSTSLOW-INCOME COUNTRIESMARKET ECONOMIESMASS UNEMPLOYMENTMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONSMINIMUM WAGESMONETARY ECONOMICSNEGATIVE SHOCKSOVERHEAD COSTSPAYROLL TAXPOLICY MAKERSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLICY RESPONSESPOLITICAL ECONOMYPRIVATE SECTORPRODUCT MARKETPRODUCT MARKET REGULATIONPRODUCTIVITYPROGRAM BENEFICIARIESPUBLIC DEBTPUBLIC SERVICESPUBLIC WORKPUBLIC WORKSPUBLIC WORKS PROGRAMSPUBLIC WORKS SCHEMESRETURNRETURNSRURAL POVERTYSAFETYSAFETY NETSAFETY NETSSELF-EMPLOYMENT ASSISTANCESEVERANCE PAYSKILLED PERSONSSKILLS DEVELOPMENTTRADE LIBERALIZATIONTRADINGTRADING PARTNERSTRAINING POLICIESTRAINING PROGRAMSTRANSITION COUNTRIESUNEMPLOYMENTUNEMPLOYMENT BENEFITSUNEMPLOYMENT INSURANCEVULNERABILITYVULNERABLE GROUPSWAGE SUBSIDIESWIN-WIN POLICIESWORKERWORKER PRODUCTIVITYWORKERSWORKING HOURSWorld Bank10.1596/10142