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Book
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi
Authors: --- --- ---
Year: 2017 Publisher: Washington, D.C. : The World Bank,

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Abstract

This paper uses nationally representative panel data and a combination of econometric approaches, to explore linkages between rural non-farm activities (wage and self-employment) and household welfare in rural Malawi. The paper analyzes the average treatment effects and distributional effects on participants' welfare indicators, such as households' per capita consumption expenditures. Then it investigates the effects of non-farm activities on the use of agricultural inputs, one channel through which non-farm employment might improve the welfare of rural households. Although participation in non-farm activities is not randomly assigned in the data, the identification strategy relies on fixed effects and correlated random effects estimation methods, dealing effectively with time invariant heterogeneity, coupled with geographical covariate adjustments, controlling for time varying differences in local market conditions and employment opportunities. The results suggest that non-farm wage employment and non-farm self-employment are welfare improving and poverty reducing. However, households at the lower tail of the wealth distribution benefit significantly less from participation than the wealthiest. Although the results support the promotion of the rural non-farm economy for poverty reduction purposes, they indicate that targeted interventions that improve poor households' access to high-return non-farm opportunities are likely to lead to bigger successes in curbing rural poverty.


Book
The Evidence Is In : How Should Youth Employment Programs In Low-Income Countries Be Designed?
Authors: ---
Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Youth in many low-income countries are entering the labor force in unprecedented numbers, yet many struggle to secure rewarding livelihoods. This paper outlines the economic development challenges that constrain youth's transition into employment, and it parses the evidence on which programs and policies appear to speed that transition. It concludes that it may be time for a fundamental reassessment of approaches for addressing youth employment and the youth transition in low-income countries. Employment opportunities in low-income countries reflect the pace of economic and structural transformation. In designing strategies, policies, and programs to meet the entry-into-employment challenge for youth, the starting point is to diagnose the economy and current/future employment opportunities. Combined with the analysis of youth employment problems from a structural transformation perspective, evidence from rigorous evaluations of youth employment interventions provides new insight into which kinds of interventions are more likely to help youth succeed in certain contexts. The evidence reviewed here casts serious doubt on the efficacy and value of training interventions to help youth enter formal wage employment. The case is stronger for interventions that speed the transition to self-employment in farming or non-farm household enterprises. Support for development of transferable character skills and social integration among youth through positive youth development programs should be tested further for employment and earnings impacts, perhaps along with cash transfers to youth or access to finance. In reviewing the evidence on the cost-effectiveness and sustainability of youth employment impacts, the paper also notes the need for better measures of displacement and general equilibrium effects.


Book
Household Enterprises in Fragile and Conflict-Affected States : Results from a Qualitative Toolkit Piloted in Liberia, Annexes
Authors: ---
Year: 2016 Publisher: Washington, D.C. : The World Bank,

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Abstract

Many policy makers across Sub-Saharan Africa, including in fragile and conflict-affectedsituations (FCS), consider youth employment a central policy issue. As the recent World Development Report (WDR) on jobs has highlighted, jobs are a key driver of development(World Bank 2012). Jobs matter for living standards, productivity, as well as social cohesion. Particularly in FCS, jobs mean more than earnings; feelings of exclusion stem from a lack ofreliable, quality employment, not simply income (Rebosio and Romanova 2013). Volume 1 of this paper presents results from the application of a novel qualitative toolkit in Liberia, with the objective to improve the knowledge of the constraints to entry and productivity among nonagricultural household enterprises. It outlines lessons learned from the application of this research and makes policy-relevant findings on how to improve productivity in the sector in Liberia. In addition, the report contains methodological lessons that can inform the application of the toolkit in other contexts. Volume 2 of this paper presents a global review of the literature on household enterprises in FCS and the detailed methodology and tools for the research.


Book
The Household Enterprise Sector in Tanzania : Why It Matters and Who Cares
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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The household enterprise sector has a significant role in the Tanzanian economy. It employs a larger share of the urban labor force than wage employment, and is increasingly seen as an alternative to agriculture as a source of additional income for rural and urban households. The sector is uniquely placed within the informal sector, where it represents both conditions of informal employment and informal enterprise. This paper presents a case study on Tanzania using a mixed approach by combining both quantitative and qualitative analysis to examine the important role of household enterprises in the labor force of Tanzania, and to identify key factors that influence their productivity. Household enterprise owners are similar to typical labor force participants although primary education appears to be the minimum qualification for household enterprise operators to be successful. Access to location matters - good, secure location in a marketplace or industrial cluster raises earnings-and access to transport and electricity is found to have a significant effect on earnings as well. In large urban areas, the biggest constraint faced by household enterprises is the lack of access to secure workspace to run the small business. Although lack of credit is a problem across all enterprises in Tanzania, household enterprises are more vulnerable because they are largely left out of the financial sector either as savers or borrowers. Although HEs are part of the livelihood strategies of over half of households in Tanzania, they are ignored in the current development policy frameworks, which emphasize formalization, not productivity. Tanzania has a large number of programs and projects for informal enterprises, but there is no set of policies and program interventions targeted at the household enterprise sector. This gap exacerbates the vulnerability of household enterprises, and reduces their productivity.


Book
Is Informality Welfare-Enhancing Structural Transformation? : Evidence from Uganda
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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While Africa's recent decade of growth and poverty reduction performance has been lauded, concern has been expressed regarding the structure of this growth. In particular, questions have been raised about whether the growth is based on a commodities boom, or whether it is the beginning of a structural transformation that will lift workers from low-productivity jobs into higher-productivity ones. Macro evidence has suggested that the structural transformation has not started. But macro analysis misses the evidence that the process of transformation has started, because this process begins at the household level. Household livelihoods do not move from ones based on subsistence farming and household level economic activities into livelihoods based on individual wage and salary employment away from the household in one leap-this process takes generations. The intermediate step is the productive informal sector. It is income gains at the household level in this sector that fuel productivity increases, savings, and investment in human capital in this sector. Ensuring that most households are able to diversify their livelihoods into the non-farm sector through productive informality not only increases growth, but also allows the majority of the population to share in the growth process. This paper illustrates this point with the case of Uganda which followed this path and experienced two decades of sustained growth and poverty reduction.


Book
The Household Enterprise Sector in Tanzania : Why It Matters and Who Cares
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Abstract

The household enterprise sector has a significant role in the Tanzanian economy. It employs a larger share of the urban labor force than wage employment, and is increasingly seen as an alternative to agriculture as a source of additional income for rural and urban households. The sector is uniquely placed within the informal sector, where it represents both conditions of informal employment and informal enterprise. This paper presents a case study on Tanzania using a mixed approach by combining both quantitative and qualitative analysis to examine the important role of household enterprises in the labor force of Tanzania, and to identify key factors that influence their productivity. Household enterprise owners are similar to typical labor force participants although primary education appears to be the minimum qualification for household enterprise operators to be successful. Access to location matters - good, secure location in a marketplace or industrial cluster raises earnings-and access to transport and electricity is found to have a significant effect on earnings as well. In large urban areas, the biggest constraint faced by household enterprises is the lack of access to secure workspace to run the small business. Although lack of credit is a problem across all enterprises in Tanzania, household enterprises are more vulnerable because they are largely left out of the financial sector either as savers or borrowers. Although HEs are part of the livelihood strategies of over half of households in Tanzania, they are ignored in the current development policy frameworks, which emphasize formalization, not productivity. Tanzania has a large number of programs and projects for informal enterprises, but there is no set of policies and program interventions targeted at the household enterprise sector. This gap exacerbates the vulnerability of household enterprises, and reduces their productivity.


Book
Is Informality Welfare-Enhancing Structural Transformation? : Evidence from Uganda
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Abstract

While Africa's recent decade of growth and poverty reduction performance has been lauded, concern has been expressed regarding the structure of this growth. In particular, questions have been raised about whether the growth is based on a commodities boom, or whether it is the beginning of a structural transformation that will lift workers from low-productivity jobs into higher-productivity ones. Macro evidence has suggested that the structural transformation has not started. But macro analysis misses the evidence that the process of transformation has started, because this process begins at the household level. Household livelihoods do not move from ones based on subsistence farming and household level economic activities into livelihoods based on individual wage and salary employment away from the household in one leap-this process takes generations. The intermediate step is the productive informal sector. It is income gains at the household level in this sector that fuel productivity increases, savings, and investment in human capital in this sector. Ensuring that most households are able to diversify their livelihoods into the non-farm sector through productive informality not only increases growth, but also allows the majority of the population to share in the growth process. This paper illustrates this point with the case of Uganda which followed this path and experienced two decades of sustained growth and poverty reduction.


Book
Explaining variation in child labor statistics
Authors: --- --- ---
Year: 2010 Publisher: Washington, D.C., The World Bank,

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Child labor statistics are critical for assessing the extent and nature of child labor activities in developing countries. In practice, widespread variation exists in how child labor is measured. Questionnaire modules vary across countries and within countries over time along several dimensions, including respondent type and the structure of the questionnaire. Little is known about the effect of these differences on child labor statistics. This paper presents the results from a randomized survey experiment in Tanzania focusing on two survey aspects: different questionnaire design to classify children work and proxy response versus self-reporting. Use of a short module compared with a more detailed questionnaire has a statistically significant effect, especially on child labor force participation rates, and, to a lesser extent, on working hours. Proxy reports do not differ significantly from a child's self-report. Further analysis demonstrates that survey design choices affect the coefficient estimates of some determinants of child labor in a child labor supply equation. The results suggest that low-cost changes to questionnaire design to clarify the concept of work for respondents can improve the data collected.


Book
Explaining variation in child labor statistics
Authors: --- --- ---
Year: 2010 Publisher: Washington, D.C., The World Bank,

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Abstract

Child labor statistics are critical for assessing the extent and nature of child labor activities in developing countries. In practice, widespread variation exists in how child labor is measured. Questionnaire modules vary across countries and within countries over time along several dimensions, including respondent type and the structure of the questionnaire. Little is known about the effect of these differences on child labor statistics. This paper presents the results from a randomized survey experiment in Tanzania focusing on two survey aspects: different questionnaire design to classify children work and proxy response versus self-reporting. Use of a short module compared with a more detailed questionnaire has a statistically significant effect, especially on child labor force participation rates, and, to a lesser extent, on working hours. Proxy reports do not differ significantly from a child's self-report. Further analysis demonstrates that survey design choices affect the coefficient estimates of some determinants of child labor in a child labor supply equation. The results suggest that low-cost changes to questionnaire design to clarify the concept of work for respondents can improve the data collected.


Book
Household Enterprises in Fragile and Conflict-Affected States : Results from a Qualitative Toolkit Piloted in Liberia
Authors: ---
Year: 2016 Publisher: Washington, D.C. : The World Bank,

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Abstract

Many policy makers across Sub-Saharan Africa, including in fragile and conflict-affectedsituations (FCS), consider youth employment a central policy issue. As the recent World Development Report (WDR) on jobs has highlighted, jobs are a key driver of development(World Bank 2012). Jobs matter for living standards, productivity, as well as social cohesion. Particularly in FCS, jobs mean more than earnings; feelings of exclusion stem from a lack ofreliable, quality employment, not simply income (Rebosio and Romanova 2013). Volume 1 of this paper presents results from the application of a novel qualitative toolkit in Liberia, with the objective to improve the knowledge of the constraints to entry and productivity among nonagricultural household enterprises. It outlines lessons learned from the application of this research and makes policy-relevant findings on how to improve productivity in the sector in Liberia. In addition, the report contains methodological lessons that can inform the application of the toolkit in other contexts. Volume 2 of this paper presents a global review of the literature on household enterprises in FCS and the detailed methodology and tools for the research.

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