Gaëlle Pierre

Job creation in Latin America and the Caribbean : recent trends and policy challenges

This book provides a comprehensive review of labor market developments in Latin America and the Caribbean over the past 15 years and sheds light on factors that are behind the generally poor creation of productive jobs in the region. The book reviews economic and labor market developments up to 2004 or 2005. Since then a number of countries in the region have experienced strong economic growth with some improvements in the labor market, not only in terms of a reduction in unemployment, but also in terms of the creation of more productive jobs. These developments are good news and underline that strong and sustainable growth is a necessary, albeit not sufficient, condition for better outcomes in the labor market. But the structural issues identified in the book are all pertinent today. Sustaining the process of economic growth and better sharing it across the different groups in the labor market require tacking these structural issues many of which have a clear policy lever. More than a decade has passed since the introduction of comprehensive macroeconomic stabilization packages and trade, fiscal, and financial market reforms in Latin America and the Caribbean. However, growth prospects remain disappointing; labor markets show lackluster performance, with low participation rates, high and persistent informality, and, in some cases, open unemployment. Creating viable and lasting employment is vital to reduce poverty and spread prosperity in the region. The failure to create more and more productive and rewarding jobs carries substantial political, social, and economic costs.

The returns to participation in the non-farm sector in rural Rwanda

In this paper, we investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the non-farm sector and those who do not. We use propensity score matching methods, where we create appropriate comparison groups of individuals and households. First we find that non-farm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and non-farm formal employees. Second, we show that the benefits to non-farm self-employment are much higher among the non-poor than among the poor. Third, we show that diversified households, those with a farm and a non-farm enterprise, are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the non-poor. We find little difference in expenditures between market participants and non-market participants, for comparable households in the bottom 40% of the expenditure distribution.

Do firms make greater use of training and temporary employment when labor adjustment costs are high

In this paper, we present evidence on how employers in developing and emerging economies perceive employment regulations and react to them. We use harmonized surveys of about 10,800 firms around the world, supplemented by indicators of the stringency of employment protection that summarize detailed aspects of the labor legislation. We find that firms facing tight employment protection invest more in training, but also use temporary contracts to enhance labor flexibility. Using a difference-in-difference approach to control for unobservable characteristics, we find that small firms and those in sectors characterized by greater job reallocation are the most directly affected by employment protection.JEL codesJ23, J65, K31

Recent Labor Market Performance in Vietnam Through a Gender Lens

This paper provides an overview of the recent performance of the labor market in Vietnam during the Great Recession. The analysis uses data from the Labor Force Survey and the Vietnam Household Living Standard Survey. The author finds that, notwithstanding the global crisis and domestic volatility, job creation has been sustained in Vietnam, especially in the formal sector, but that the overall quality of employment has suffered. Gender differentials are found to affect older women especially, while educated women benefit from a skills wage premium. Reassuringly given the large youth share of the total workforce, the youth labor market is dynamic and outcomes for youths have improved. Meanwhile, participation in poverty alleviation programs and labor market programs has not changed, and few workers use the newly created employment services and unemployment benefits.

Development and Employment: A Mutual Relationship

The views expressed herein are those of the authors and should not be attributed to the their organisations of affiliation.