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Book
Return Migrants and the Wage Premium : Does the Legal Status of Migrants Matter?
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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This paper examines the impact of the legal status of overseas migrants on their wages upon return to the home country. Using unique data from the Arab Republic of Egypt, which allows distinguishing between return migrants according to whether their international migration was documented or undocumented, the paper examines the impact of illegal status on wages upon return. Relying on a conditional mixed process model, which takes into account the selection into emigration, return, and the legal status of temporary migration, the analysis finds that, upon return, undocumented migrants experience a wage penalty compared with documented migrants, as well as relative to non-migrants. The results are the first to show the impact of undocumented migration on the migrant upon return to the country of origin.


Book
Firm Dynamics, Job Outcomes, and Productivity : South African Formal Businesses, 2010-14
Authors: --- --- ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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The formal private sector has a key role to play in fostering growth and reducing unemployment in South Africa-strengthening its performance is therefore critical. This paper looks at firm behaviour, firm entry and exit, job outcomes, and productivity dynamics using firm-level administrative data for South Africa. It is the first paper to benchmark employment and productivity dynamics against various comparator countries for which similar analysis has been undertaken. The paper finds that South Africa has an aged private sector with low firm dynamism and characterized by large firms that hold a large share of employment and revenue, although they are not as productive as micro firms and pay lower wages on average. The paper also finds that job creation is concentrated predominantly in incumbent firms, which are old and large, and job creation from entry and exit is negligible. The static and dynamic productivity decompositions raise a concern that although productive efficiency is gained, it is at least in part at the expense of labor. Large firms are not exploiting economies of scale, and particularly unproductive large firms may drive the weak performance of the private sector. Relatively high wages in South Africa could be partly explained by the inefficient use of labor and negative correlation between productivity and size. Likewise, these larger firms could be responsible for the negative direct impact on jobs of firms raising productivity.


Book
Decline In Wage Inequality In Brazil : A Survey
Authors: ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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In the last decades, Brazil experienced a historical decline in its wage inequality level, particularly in the first decade of the 21st century. This paper reviews the literature that attempted to explain the observed pattern. It considers mechanisms related to the supply and demand for labor, as well as institutional factors. The paper argues that the favorable economic environment in the period, combined with increases in the minimum wage, higher formalization, and a larger supply of skilled workers led to a compression in wages. However, some aspects of the decline in wage inequality are still unanswered, such as the causes behind a reduction in the experience premium and interfirm payment heterogeneity, as well as the exact role of technological changes. The paper concludes by discussing future trends in wage inequality in Brazil.


Book
Forced Displacement, Gender, and Livelihoods : Refugees in Ethiopia
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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This study uses the Ethiopia Skills Profile Survey (2017) to examine the Gender differences in livelihood opportunities and activities between refugees and host communities. The results show that refugees are significantly less likely to be in employment, and that household characteristics influence women's economic opportunities. While having a female household head, access to agricultural land, and the number of female adults increased female participation in economic activities, conversely, higher numbers of children in the household significantly reduce women's opportunities. Higher education attainment boosts both male and female refugees' participation in wage employment. Among refugees, Somali refugees have relatively better access to employment opportunities compared to other refugee groups, especially refugees from South Sudan and Sudan.


Book
Product Market Competition, Productivity, And Jobs : The Case Of South Africa
Authors: --- ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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The degree of concentration and market power in South African markets has been the topic of much policy discussion. However, there has been little evidence on what drives market power and the impact of the degree of competition in South African markets on economic outcomes. This paper improves on previous markup estimates for South Africa using a methodology developed by De Loecker and Warzynski (2012) applied to tax administrative data for 2010-14. The paper then explores the firm-level determinants of the estimated markups and assesses the link between competition and firm-level outcomes, including productivity, employment, and wages. The analysis finds that average markups across the economy appear to have risen between 2010 and 2014. Larger firms, higher-intensity exporters, and firms with greater sales shares charge higher markups than comparator firms in South Africa, even after controlling for efficiency. Moreover, lower product market competition has a significant, negative effect on productivity growth, employment growth, and wage growth in South African manufacturing industries. Higher sales-weighted and value-added-weighted average industry-level markups are associated with lower industry-level entry rates. The findings highlight the importance of implementing sound pro-competition government interventions and the significant economic benefits associated with such policies.


Book
Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania
Authors: --- --- --- --- --- et al.
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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What are the impacts of expanding mobile broadband coverage on poverty, household consumption and labor market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor market outcomes. Working age individuals living in areas covered by mobile internet witnessed an increase in labor force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender and skill level. Younger and more skilled men benefit the most through higher labor force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.


Book
Testing Classic Theories of Migration in the Lab
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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The predictions of different classic migration theories are tested by using incentivized laboratory experiments to investigate how potential migrants decide between working in different destinations. First, the authors test theories of income maximization, migrant skill-selection, and multi-destination choice as they vary migration costs, liquidity constraints, risk, social benefits, and incomplete information. The standard income maximization model of migration with selection on observed and unobserved skills leads to a much higher migration rate and more negative skill-selection than is obtained when migration decisions take place under more realistic assumptions. Second, these lab experiments are used to investigate whether the independence of irrelevant alternatives assumption holds. The results show that it holds for most people when decisions just involve wages, costs, and liquidity constraints. However, once the risk of unemployment and incomplete information is added, independence of irrelevant alternatives no longer holds for about 20 percent of the sample.


Book
The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
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Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Using an event-study framework, this paper examines the impact of four minimum wage hikes between 2008 and 2015 on the Cambodian labor market. The analysis finds that, except for immediate adjustments around the time of the hikes, the minimum wage hikes did not affect participation rates in the affected sector-garments and footwear-or the unaffected sectors. However, the minimum wage hikes increased wages modestly (3 percent) for workers in the affected sectors and modestly decreased wages (1.5 percent) for workers in the unaffected sectors. The gains for the affected sectors are slightly larger at higher quantiles than at lower quantiles. This is suggestive of a change in compensation structure within the affected firms as a result of the hikes.


Book
Improving the Measurement of Rural Women's Employment : Global Momentum and Survey Research Priorities
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Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Rural economies are in transition around the world; in many countries, improved technology and linkages across sectors have expanded access to markets and accelerated production for some farmers. At the same time, rural areas globally are facing a growing base of landless and smallholder farmers, out-migration to urban areas, and persistence of low-skilled, informal, and seasonal jobs where women are often heavily concentrated. Recent global initiatives are examining programs that can effectively raise rural incomes, including how addressing shortfalls in wome's hours worked and earnings can raise rural productivity and growth. But well-designed policies to address these issues require improved counting of individuals' employment, accounting for the complexity of measuring rural women's labor force participation, as well as data on social, economic, and institutional constraints that women face in seeking better economic opportunities. Using recent rounds of the Ethiopia, Malawi, Nigeria, and Uganda Living Standards and Measurement Study-Integrated Surveys on Agriculture, as well as findings from recent country pilots conducted by the International Labour Organization, this paper discusses best practices and issues to consider when examining rural women's employment in socioeconomic surveys, as well as a survey research agenda to improve measurement.


Book
Effects of Public Sector Wages on Corruption : Wage Inequality Matters
Authors: --- ---
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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The paper uses a new country-level, panel data set to study the effect of public sector wages on corruption. The results show that wage inequality in the public sector is an important determinant of the effectiveness of anti-corruption policies. Increasing the wages of public officials could help reduce corruption in countries with low public sector wage inequality. In countries where public sector wages are highly unequal, however, raising the wages of government employees could increase corruption. These results are robust to a wide range of empirical model specifications, estimation methods, and distributional assumptions. The relation persists when controlling for latent omitted variables, using the share of contracts in the private sector as an instrument for the public-private wage differential. Combining increases in public sector wages with policies affecting the wage distribution could help policy makers design cost-effective programs to reduce corruption in their countries.

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