1 / 21

CEA. Session : Options for better jobs Montreal, June 1, 2013

CEA. Session : Options for better jobs Montreal, June 1, 2013. The difficult road for better jobs in Latin America. Leonardo Gasparini. The bright side. Positive labour market performance in Latin America since the early 2000s In all the countries In nearly all the labour dimensions.

gotzon
Download Presentation

CEA. Session : Options for better jobs Montreal, June 1, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. CEA. Session: Options for better jobs Montreal, June 1, 2013 Thedifficult road for better jobs in Latin America Leonardo Gasparini

  2. The bright side • Positive labour market performance in Latin America since the early 2000s • In all the countries • In nearly all the labour dimensions

  3. Employment Employment rate. Latin America. Unweighted average. Source: CEDLAS (2013).

  4. Unemployment Unemployment rate. Latin America. Unweighted average. Source: CEDLAS (2013).

  5. Wage premium Conditional wage premium (skilled/unskilled). Latin America. Unweighted average. Source: Gasparini et al. (2013)

  6. This permeated into a substantial fall in poverty Poverty headcount ratio (line USD 4 PPP). Source: CEDLAS (2013).

  7. …and in inequality Gini coefficient – Household per capita income. Unweighted average. Source: CEDLAS (2013).

  8. Someprogress, butstillsignificant problems High wage inequality Low productivity Low job quality  labour informality

  9. The concept of informality • “Informality is a term that has the dubious distinction of combining maximum policy importance and political salience with minimal conceptual clarity and coherence in the analytical literature” (Kanbur, 2009). • I use the social protection definition: lack of labor protection and social security benefits associated to the job.

  10. Evidence on informality • Drawn from recent study based on microdata of more than 300 household surveys in Latin America.

  11. Heterogeneity across countries Source: CEDLAS (2013). Share of informal salaried workers

  12. Some improvements in the 2000s, but still high levels Informality rate. Social protection definition. All workers. Unweighted mean for Latin America. Source: CEDLAS (2013).

  13. Main determinants • Economic expansion (informality seems counter-cyclical) • Changes in the structure of the economy toward more “pro-formal” sectors (public sector, some skilled services). • More enforcement: • stronger labour markets • improved technology

  14. Approach 1 • Informality is a feature of • under-development • Growth will take care

  15. Approach 2: more enforcement • Some improvements but • Still difficult • Weak public sector • Large self-employment sector • May not be optimal • More enforcement may imply higher unemployment, at least in low-productivity sectors

  16. Approach 3: dual system • Trend in the region toward the extension of social benefits to cover the informal workers. • Significant impact on poverty but .. • might generate some problems in the labor market.

  17. Incentives at work? Transitions to formality Informal workers in poor households Source: Gasparini and Garganta (2013).

  18. Incentives at work? Transitions to formality Informal workers in poor households Source: Gasparini and Garganta (2013).

  19. In summary • Few good-quality jobs with access to social security. • Then, government provides social protection to workers in bad-quality jobs. • But that slows down the creation of good-quality jobs.

  20. Concluding remarks • Positive labour performance since the early 2000s but still much to improve. • A delicate balance between enforcement, active policies and incentives.

More Related