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A Skills-Based Human Capital Framework to Understand the Phenomenon of Youth Economic Disengagement :
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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This paper revisits traditional human capital models and proposes a new conceptual framework of human capital accumulation, anchored in skills development, to illustrate the phenomenon and implications of youth economic disengagement. In the framework, youth economic disengagement is defined as a state (temporary or permanent) where individuals stop accumulating human capital due to inadequate access and quality of opportunities for skills development through formal education and employment. Total economic disengagement is a rational choice that individuals make when (i) the formal education system and labor market do not contribute to build skills that are valued by the labor market, and (ii) the costs related to economic engagement (that is, studying and working) surpass its benefits. The phenomenon of economic disengagement has lifelong implications that not only constrain and restrain future earnings, but also undermine prospects for improvements in productivity and economic growth.


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Labor Market Regulations and Outcomes in Sweden : A Comparative Analysis of Recent Trends
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Year: 2015 Publisher: Washington, D.C., The World Bank,

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This paper analyzes recent trends in Sweden's labor market regulations in relation to comparator economies and examines the relationship between labor market regulations and outcomes. The paper finds that the Swedish labor market responded more rapidly to the recent global financial crisis than the majority of the European Union economies, which helped Sweden to recover quickly. Sweden's hiring regulations are more flexible than those of many comparator economies, however, fixed-term contracts of short duration might have adverse consequences for the economy. In addition, Sweden's regulations on work during the weekly holidays and mandatory paid annual leave are stricter than those of the majority of comparator economies. Moreover, among the economies of the Organisation for Economic Co-operation and Development, Sweden has one of the largest differences in employment protection between permanent and temporary employees, which could lead to a segmented labor market, where insiders enjoy high job security and outsiders are largely marginalized. This could be cause for concern, given that Sweden has a higher share of involuntary temporary workers among youth and involuntary part-time workers than both the Nordic and European Union averages. While protecting employees is important, excessive protection, particularly if it differs across different types of employment contracts, has been shown to have adverse effects on welfare and economic performance.


Book
Labor Market Regulations and Outcomes in Sweden : A Comparative Analysis of Recent Trends
Authors: ---
Year: 2015 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper analyzes recent trends in Sweden's labor market regulations in relation to comparator economies and examines the relationship between labor market regulations and outcomes. The paper finds that the Swedish labor market responded more rapidly to the recent global financial crisis than the majority of the European Union economies, which helped Sweden to recover quickly. Sweden's hiring regulations are more flexible than those of many comparator economies, however, fixed-term contracts of short duration might have adverse consequences for the economy. In addition, Sweden's regulations on work during the weekly holidays and mandatory paid annual leave are stricter than those of the majority of comparator economies. Moreover, among the economies of the Organisation for Economic Co-operation and Development, Sweden has one of the largest differences in employment protection between permanent and temporary employees, which could lead to a segmented labor market, where insiders enjoy high job security and outsiders are largely marginalized. This could be cause for concern, given that Sweden has a higher share of involuntary temporary workers among youth and involuntary part-time workers than both the Nordic and European Union averages. While protecting employees is important, excessive protection, particularly if it differs across different types of employment contracts, has been shown to have adverse effects on welfare and economic performance.


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Wage Determination in Northeast Brazil
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Year: 2005 Publisher: Washington, D.C., The World Bank,

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This paper analyzes the labor markets in the states of Pernambuco, Bahia, Ceara, and the Northeast region of Brazil. The findings show a rather heterogeneous impact pattern of individual characteristics on monthly wages across the wage distribution. That is, the magnitude of the affect of a wage determinant is different depending on whether the worker is placed in the lower, median or top of the wage distribution. The findings reveal that education is key. Basic schooling matters for all four geographical areas and across the income distribution. However, poor workers are awarded lower returns than their richer peers and in Bahia and Ceara, the poor do not obtain any returns to basic schooling. Furthermore, the impact of 5-8 or 9-11 years of education is larger than that of 1-4 years of completed education. The returns obtained by a median worker are higher in Ceara and Pernambuco than in Bahia. Finally, completed tertiary education offers thelargest returns of all levels of education; the median worker receives a premium of 105, 249, and 216 percent in Ceara, Pernambuco, and Bahia, respectively. Hence, one direct policy implication is to increase the quality of education, in particular in poorer neighborhoods. Experience impacts positively on wages and it is increasing with age until workers reach 50 years of age. However, returns to experience are falling significantly across the wage distribution. For the poor and younger generations, experience contributes more to wages than education. The occupation of workers is important for wage determination; all workers in the included occupational groups are paid more than workers engaged in agricultural activities. Workers employed as technicians or administrators obtain the highest returns. The white/non-white wage disparity reveals that white workers are paid 17 percent more than their non-white co-workers, taking into account other characteristics. Gender disparities are large in the Northeast and heterogeneous across the wage distribution. The time spent in the current state impacts adversely on wages. That is, those that have stayed earn, on average, less than the newcomers. There are no considerable differences between male and female workers. Union membership has a positive impact on workers' wages.


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The Mauritanian Labor Market Through the Lens of the 2004 National Household Survey
Authors: --- ---
Year: 2009 Publisher: Washington, D.C., The World Bank,

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This paper provides a snapshot of Mauritania's labor market using data from the 2004 national household survey. The results show that the labor market is characterized by lower participation rates, lower employment-to-population rates, and relatively higher unemployment rates than in neighboring countries. The non poor fare better in the labor market than the poor. Although the labor force participation of the poor is higher than that of the non poor, the poor display a higher unemployment rate and a lower employment rate than the non poor. The data also suggest a negative correlation between wage employment and poverty. Substantial differences in labor market indicators emerge when disaggregating the analysis by gender and age-group. Female non-participation is extremely high. Women systematically earn less than men independently of their sector and type of employment and controlling for other factors, such as education. Young adults face considerable difficulties in entering the labor market: more than half of the population aged 15-24 is neither studying nor participating in the labor force. As gender disparities remain important for similar levels of education, more work is needed to understand whether cultural factors may prevent women from entering the labor market. Concerning young adults, future poverty reduction strategies need to pay more explicit attention to the promotion of employment through informed labor market policies.


Book
Wage Determination in Northeast Brazil
Author:
Year: 2005 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper analyzes the labor markets in the states of Pernambuco, Bahia, Ceara, and the Northeast region of Brazil. The findings show a rather heterogeneous impact pattern of individual characteristics on monthly wages across the wage distribution. That is, the magnitude of the affect of a wage determinant is different depending on whether the worker is placed in the lower, median or top of the wage distribution. The findings reveal that education is key. Basic schooling matters for all four geographical areas and across the income distribution. However, poor workers are awarded lower returns than their richer peers and in Bahia and Ceara, the poor do not obtain any returns to basic schooling. Furthermore, the impact of 5-8 or 9-11 years of education is larger than that of 1-4 years of completed education. The returns obtained by a median worker are higher in Ceara and Pernambuco than in Bahia. Finally, completed tertiary education offers thelargest returns of all levels of education; the median worker receives a premium of 105, 249, and 216 percent in Ceara, Pernambuco, and Bahia, respectively. Hence, one direct policy implication is to increase the quality of education, in particular in poorer neighborhoods. Experience impacts positively on wages and it is increasing with age until workers reach 50 years of age. However, returns to experience are falling significantly across the wage distribution. For the poor and younger generations, experience contributes more to wages than education. The occupation of workers is important for wage determination; all workers in the included occupational groups are paid more than workers engaged in agricultural activities. Workers employed as technicians or administrators obtain the highest returns. The white/non-white wage disparity reveals that white workers are paid 17 percent more than their non-white co-workers, taking into account other characteristics. Gender disparities are large in the Northeast and heterogeneous across the wage distribution. The time spent in the current state impacts adversely on wages. That is, those that have stayed earn, on average, less than the newcomers. There are no considerable differences between male and female workers. Union membership has a positive impact on workers' wages.


Book
The Relative Effects of Skill Formation and Job Matching on Wage Growth in Ethiopia
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Year: 1999 Publisher: Washington, D.C., The World Bank,

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April 1999 - Estimated age and job seniority profiles of wages and marginal productivity in Ethiopia suggest that both skill formation and job matching significantly affect growth of wages and productivity over time. However, job matching is by far the more important of the two sources of growth in wages and productivity. Mengistae analyzes production and labor market data for a random selection of small to medium-size firms in Ethiopia to answer two questions: Does a worker's marginal productivity increase with time in the labor market or with job seniority, as must be the case if on-the-job skill formation or job matching has anything to do with the dynamics of wages observed in the data? Assuming that marginal productivity grows with experience or seniority, is skill formation more or less important than job matching as a source of growth in productivity? The main feature of Mengistae's analysis is the joint regression of the log of the average product of hours in a firm and the log of average hourly earnings of a firm's employees on the shares of experience-seniority cells of workers in total annual hours in the firm. Marginal productivity falls as experience in the labor market passes the 15-year mark, but the expected marginal product of a mobile worker with 16 or more years of experience is still nearly 80 percent higher than that of the base group. The between-jobs growth of hourly wages with potential experience is also large, but not as large as growth in marginal productivity for workers with less than 15 years of experience. Mengistae concludes that job matching is far more important than skill formation as a source of growth in productivity. Net mobility gains account for at least twice the share of the return to skill formation in the observed between-jobs growth of wages with market experience. The rate of return to skills formation is higher in the United States than in Ethiopia. The relative return to skills formation is probably lower in Ethiopia partly because the flow of information about the labor market is more restricted there. This paper-a product of the Development Research Group-is part of a larger effort in the group to identify firm-level sources of growth in productivity. The author may be contacted at tmengistae@worldbank.org.


Book
The Mauritanian Labor Market Through the Lens of the 2004 National Household Survey
Authors: --- ---
Year: 2009 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper provides a snapshot of Mauritania's labor market using data from the 2004 national household survey. The results show that the labor market is characterized by lower participation rates, lower employment-to-population rates, and relatively higher unemployment rates than in neighboring countries. The non poor fare better in the labor market than the poor. Although the labor force participation of the poor is higher than that of the non poor, the poor display a higher unemployment rate and a lower employment rate than the non poor. The data also suggest a negative correlation between wage employment and poverty. Substantial differences in labor market indicators emerge when disaggregating the analysis by gender and age-group. Female non-participation is extremely high. Women systematically earn less than men independently of their sector and type of employment and controlling for other factors, such as education. Young adults face considerable difficulties in entering the labor market: more than half of the population aged 15-24 is neither studying nor participating in the labor force. As gender disparities remain important for similar levels of education, more work is needed to understand whether cultural factors may prevent women from entering the labor market. Concerning young adults, future poverty reduction strategies need to pay more explicit attention to the promotion of employment through informed labor market policies.


Book
Reforming the welfare state : recovery and beyond in Sweden
Authors: --- ---
ISBN: 9780226261928 0226261921 9786612538384 0226261913 1282538381 9780226261911 9781282538382 Year: 2010 Publisher: Chicago ; London : University of Chicago Press,

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Over the course of the twentieth century, Sweden carried out one of the most ambitious experiments by a capitalist market economy in developing a large and active welfare state. Sweden's generous social programs and the economic equality they fostered became an example for other countries to emulate. Of late, Sweden has also been much discussed as a model of how to deal with financial and economic crisis, due to the country's recovery from a banking crisis in the mid-1990's. At that time economists heatedly debated whether the welfare state caused Sweden's crisis and should be reformed-a debate with clear parallels to current concerns over capitalism. Bringing together leading economists, Reforming the Welfare State examines Sweden's policies in response to the mid-1990's crisis and the implications for the subsequent recovery. Among the issues investigated are the way changes in the labor market, tax and benefit policies, local government policy, industrial structure, and international trade affected Sweden's recovery. The way that Sweden addressed its economic challenges provides valuable insight into the viability of large welfare states, and more broadly, into the way modern economies deal with crisis.

The welfare state in transition : reforming the Swedish model
Authors: --- ---
ISBN: 0226261786 9786611430955 1281430951 0226261859 9780226261850 9780226261782 Year: 1997 Publisher: Chicago : University of Chicago Press,

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Once heralded in the 1950's and 1960's as a model welfare state, Sweden is now in transition and in trouble since its economic plunge in the early 1990's. This volume presents ten essays that examine Sweden's economic problems from a U.S. perspective. Exploring such diverse topics as income equalization and efficiency, welfare and tax policy, wage determination and unemployment, and international competitiveness and growth, they consider how Sweden's welfare state succeeded in eliminating poverty and became a role model for other countries. They then reflect on Sweden's past economic problems, such as the increase in government spending and the fall in industrial productivity, warning of problems to come. Finally they review the consequences of the collapse of Sweden's economy in the early 1990's, exploring the implications of its efforts to reform its welfare state and reestablish a healthy economy. This volume will be of interest to policymakers and analysts, social scientists, and economists interested in welfare states.

Keywords

Economic conditions. Economic development --- Sweden --- 338 --- 330.580 --- 331.100 --- 331.30 --- 331.31 --- NBB congres --- SE / Sweden - Zweden - Suede --- 330.9485 --- 09.11. --- Economische situatie. Economische structuur van bepaalde landen en gebieden. Economische geografie. Economische produktie.economische produkten. Economische diensten --- Gecontroleerde economie. Geleide economie. Welvaarststaat. Algemeenheden. --- Economische geschiedenis: algemeenheden. --- Economische toestand. --- Economisch beleid. --- Sociale verzekering ; Meerdere landen --- Economic conditions --- -Congresses. --- 338 Economische situatie. Economische structuur van bepaalde landen en gebieden. Economische geografie. Economische produktie.economische produkten. Economische diensten --- Sweden -- Economic conditions -- 1945- -- Congresses. --- Sweden -- Economic conditions. --- Economic History --- Business & Economics --- Suède --- Zweden --- Schweden --- Svezia --- Suecia --- Zviedrija --- Shvet︠s︡ii︠a︡ --- Szwecja --- Sverige --- Konungariket Sverige --- Kingdom of Sweden --- スウェーデン --- Suwēden --- 09.11 --- Gecontroleerde economie. Geleide economie. Welvaarststaat. Algemeenheden --- Economische geschiedenis: algemeenheden --- Economische toestand --- Economisch beleid --- Congresses. --- E-books --- Business. --- Social sciences. --- POLITICAL SCIENCE / General. --- Behavioral sciences --- Human sciences --- Sciences, Social --- Social science --- Social studies --- Civilization --- Trade --- Economics --- Management --- Commerce --- Industrial management --- welfare state, government, policy, poverty, class, sweden, spending, productivity, industry, growth, international competition, unemployment, wage determination, taxation, efficiency, income equalization, economy, financial crisis, labor market, restructuring, subsidies, regulation, economic performance, employer size, nonfiction, economics, global.

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