François Roubaud

Reassessing the Gender Wage Gap in Madagascar: Does Labor Force Attachment Really Matter?

In the labor economics literature, it has been argued that differences in labor force attachment across gender are important to explain the extent of the gender wage gap. However, measures of women’s work experience are particularly prone to errors given discontinuity in labor market participation. Using proxy measures such as potential experience may lead to biased estimates of the returns to human capital. Such biases cannot be ignored since these returns are used in the standard decomposition techniques to measure the extent of gender‐based wage discrimination. By matching two original surveys conducted in Madagascar in 1998—a labor force survey and a biographical survey—we built a unique data set that enabled us to combine the original information gathered from each of them, particularly the earnings from current employment and the entire professional trajectories. Our results lead to a reassessment of the returns to human capital as potential experience always exceeds actual experience for both males and females. By using actual experience, we obtain a significant increase in the portion of the gender earnings gap explained by observable characteristics, while the differences in average actual experience across sexes lead to markedly different estimates of the fraction of the gender gap explained by experience.

Who Suffers the Penalty? A Panel Data Analysis of Earnings Gaps in Vietnam

Abstract In spite of its predominant economic weight in developing countries, little is known about the informal sector earnings structure compared to that of the formal sector. Taking advantage of the rich VHLSS dataset in Vietnam, in particular its three wave panel data (2002, 2004, 2006), we assess the magnitude of various formal–informal earnings gaps while addressing heterogeneity at three different levels: the worker, the job (wage employment vs. self-employment) and the earnings distribution. We estimate fixed effects and quantile regressions to control for unobserved individual characteristics. Our results suggest that the informal sector earnings gap highly depends on the workers’ job status and on their relative position in the earnings distribution. Penalties may in some cases turn into premiums. By comparing our results with studies in other developing countries, we draw conclusions highlighting Vietnam’s labour market specificity.

Urban Poverty Dynamics in Peru and Madagascar, 1997–99: A Panel Data Analysis1

Abstract Despite the increasing awareness concerning the importance of distinguishing chronic and transient poverty for policy making, cross-country comparative studies of poverty dynamics in developing countries are virtually non-existent. The small, though increasing, number of existing studies makes it difficult to draw general conclusions because of the methodological differences among them. Crucial questions are still unanswered. Are the factors associated with chronic poverty and vulnerability the same from one country to the other? What are the features that characterize exits from poverty? Based on a large three-wave panel sample of Peruvian and Madagascan urban households (1997–99), the importance of poverty transitions is examined, as well as the characteristics of the temporarily and the chronically poor, with respect to those of non-poor households. Then, we highlight through a multinomial logit model, the specific contributions of household characteristics (demographics, human and physical capital), but also of shocks experienced by these households (related to demographics and the job market) in explaining chronic poverty as well as poverty entries and exits. In this analysis, the impact of location variables linked to neighbourhoods (provision of public goods, income levels, human capital and employment structure, among others) on poverty transitions is also considered. One of the main findings is that the factors associated with permanent poverty amply cover the characteristics generally identified in analyses on static poverty correlates. Nevertheless, these results do not confirm the idea that only shocks are relevant to temporary forms of poverty. The type and quality of entry in the job market, as well as the features of the neighbourhood, turn out to be equally relevant in the analysis of poverty dynamics. These results suggest that the spatial inequality dimension should be added to analyses of income and poverty transition dynamics.

New international poverty reduction strategies

Jean-Pierre Cling, Mireille Razafindrakoto and Francois Roubaud Introduction: Have the Changes actually Changed Anything? Part I: Diagnosis and Reflections on Poverty Reduction Policies 1. Jean-Pierre Cling A Critical Review of the World Banks Stance on Poverty Reduction 2. Denis Cogneau Poverty, Inequality of Conditions and Inequality of Opportunities: Chances and Risks of New Strategies 3. Serge Paugam The Lessons to be Learnt from Methods of Regulating Poverty in Europe 4. Mireille Razafindrakoto and Francois Roubaud Urban Poverty and Recession in Sub-Saharan Africa: Elements for an Assessment 5. Mireille Razafindrakoto and Francois Roubaud Do They Really Think Differently? The Voice of the Poor Through Quantitative Surveys Part II: Scope and Limitations of the New International Initiatives 6. Jean-Pierre Cling, Mireille Razafindrakoto and Francois Roubaud The Participatory Process Towards Establishing New Relationship Between Stakeholders 7. Jean-Pierre Cling, Mireille Razafindrakoto and Francois Roubaud Poverty Reduction Strategy Papers: Old Wine in New Bottles? 8. Idrissa Dante, Mohamed Ali Marouani and Marc Raffinot Poverty Reduction in Mali: Will the PRSP Make a Difference? 9. Jean-David Naudet Debt Relief or Aid Reform? 10. Anne-Sophie Bougouin and Marc Raffinot The HIPC Initiative and Poverty Reduction Part III: Monitoring and Evaluation Systems 11. Mireille Razafindrakoto and Francois Roubaud The Existing Systems for Monitoring Poverty: Weaknesses of the Usual Household Surveys 12. Daniel Verger The Different Approaches to Measuring Poverty in Europe: What Lessons for the LDCs? 13. Mireille Razafindrakoto and Francois Roubaud Two Original Poverty Monitoring Tools: The 1-2-3 Surveys and the Rural Observatories 14. Denis Cogneau, Michael Grimm and Anne-Sophie Robilliard Evaluating Poverty Reduction Policies: The Contribution of Micro-Simulation Techniques

To be or not to be registered? Explanatory factors behind formalizing non-farm household businesses in Vietnam

This article sets out to investigate the reasons why some household businesses decide to register and become formal (while others do not) in order to shed light on the origins of informality. We use qualitative as well as quantitative data on household businesses (HB) derived from first-hand representative surveys implemented in Hanoi and Ho Chi Minh City. The study reveals that although most of the informal businesses operate ‘illegally’, this is more due to unclear registration legislation than the mark of a deliberate intention to evade the economic regulations. Among the different factors that influence the registration decisions, the reason for setting up the business appears to be a determining one: the more it is a real choice (businesses set up to be independent or to follow a family tradition) and the less a constraint (set up for lack of a job alternative), the more the HB is inclined to be registered. Furthermore, the analysis highlights that incentives do prove decisive insofar as the probability of having a formal business is greater among HB heads who consider that registration provides at least partial protection from corruption. Besides, access to information, the market and large business orders also drive the informal entrepreneurs to register. These results stress the need for clarification of the legal framework as well as incentive policies in order to address the issue of informality.

Vietnam labour market and informal economy in a time of crisis and recovery 2007-2009 : main findings of the Labour Force Surveys (LFS)

In 2007 the General Statistics Office (GSO) launched a joint research program with the French Institute of Research for Development (IRD) to measure and analyzes the informal sector in Vietnam. Two kinds of surveys were conducted in 2007: a national Labour Force Survey (LFS) which, in a first for Vietnam classified labour by institutional sector thereby separating out the informal sector; and two specific surveys in Hanoi and Ho Chi Minh City (HCMC) which were grafted onto the LFS2007 to find out more about the characteristics of household businesses (HB) in general and especially the informal sector (HB&IS2007). This brief presents the main findings (both methodological and analytical) of these two rounds of LFS as regards the labour market and the informal economy in Vietnam. In the context of the global crisis, it looks at the dynamics of the main labour market indicators with a special focus on informal sector and informal employment between 2007 and 2009.For the first time ever in Vietnam, it is possible measure precisely the evolution of the informal economy and to check for the robustness of the estimates provided. In the conclusion the author outline some of the implications of the findings in terms of survey design and economic and social policies.

Development, a Question of Opportunity? A Critique of the 2006 World Development Report: Equity and Development

The World Banks World Development Report 2006 addresses equity and development, defining equity as respect for equal opportunities combined with the avoidance of absolute deprivation. Equity has up to now remained a marginal issue in development economics. This detailed analysis endeavours to place the subject within the context of the evolution of World Bank thinking and policies. The wealth of the concept is illustrated, the downside being the difficulty in defining it accurately. We also emphasise the gap between the prospects opened up by such an enlargement of development goals and the reports policy recommendations, which are generally merely an extension of the World Banks traditional analyses.

Corruption in the Informal Sector: Evidence from West Africa

Abstract Using a unique dataset, this paper analyses the causes and impacts of bribery in the informal sector in West Africa. It investigates the determinants of the incidence of bribery and the magnitude of the bribes actually paid. Our results show that the mechanisms at play are no different than those found for the formal sector by other authors. With respect to the impacts of corruption on a firm’s performance, our findings show that experience of corruption increases business performance, but that this effect is driven by just one category of informal firm: constrained gazelles.

Responding to the SDG16 Measurement Challenge: The Governance, Peace and Security Survey Modules in Africa

This paper presents an ongoing initiative, built on practical approach and grounded in fieldwork experience, to produce harmonised statistics on Governance, Peace and Security (GPS) at continental level in Africa. The methodology consists of adding on standardised GPS modules to socioeconomic household surveys. In line with the usually promoted principles of inclusiveness and participation, the use of statistical survey among large and representative sample of the population is a good strategy to voice citizens’ views and concerns. The adoption of the 2030 agenda, which positions institution-building and governance issues as a cornerstone of sustainable development, provides a unique opportunity to consolidate this pioneering African experience. The institutionalisation of the production of GPS statistics by National Statistics Offices within the official statistics field can give the means to take up the Goal 16 measurement challenge. The paper describes the main methodological options for doing so and draws lessons and initial evidence from a dozen countries that have piloted the GPS survey module. Selected empirical results illustrate the analytical potential and policy relevance offered by this approach.

Introduction générale. Une analyse comparée des marchés urbains du travail en Afrique subsaharienne

L’Afrique au sud du Sahara comptait en 2010 une population de 854 millions d’habitants (BANQUE MONDIALE, 2012 a). Le maintien de taux de fécondité à un niveau relativement élevé, favorisé par le fait que 42 % de la population sont âgés de moins de 15 ans, entraîne une forte croissance démographique (2,5 % en moyenne en 2010). Parallèlement, l’Afrique subsaharienne (ASS) compte aujourd’hui la proportion de pauvres la plus élevée du monde avec 47,5 % de la population qui disposaient de moins de 1,25 dollar par jour en parité de pouvoir d’achat en 2008. C’est d’ailleurs le seul continent où le nombre de pauvres est aujourd’hui encore en augmentation.