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Understanding value chains to drive job growth

Maria Laura Sanchez Puerta's picture

 

Several new tools are helping DFIs measure the impact of the private sector investments on jobs.
Several new tools are helping development finance institutions measure the impact of the private sector investments on jobs. Photo: Salahaldeen Nadir / World Bank


Let’s Work, a global partnership of over 30 organizations, is piloting tools that can help Development Finance Institutions (DFIs) measure the impact of private sector investments on jobs. The aim is for DFIs to not only measure jobs in the same consistent way, but also along the same nuanced dimensions: number of jobs gained, the quality of those jobs, and who gets those jobs (inclusiveness).  One of the measurement methods being developed by the Partnership is the Jobs in Value Chains Survey tool.
 

Can Africa grow its manufacturing sector & create jobs?

Francois Steenkamp's picture
Africa jobs
Since 2008, the share of manufacturing in GDP across Africa has stagnated at around 10%, calling into question if African economies have undergone structural transformation vital to sustained economic growth. Photo: Curt Carnemark / World Bank


Over the past decade and a half, Sub-Saharan Africa has experienced rapid economic growth at an average annual rate of 5.5%. But since 2008, the share of manufacturing in GDP across the continent has stagnated at around 10%.  This calls into question as to whether African economies have undergone structural transformation – the reallocation of economic activity across broad sectors -- which is considered vital for sustained economic growth in the long-run.

Partnering to measure impacts of private sector projects on job creation

Alvaro Gonzalez's picture
Worker in Ghana
For the poor and vulnerable of the world, jobs are key to ending poverty and driving development. But not all jobs are equally transformational.  
Photo: Jonathan Ernst / World Bank

Jobs are what we earn, what we do, and sometimes even who we are. For the poor and vulnerable of the world, jobs are key to ending poverty and driving development. But not all jobs are equally transformational. Good jobs add value to society, taking into account the benefits they have on the people who hold them, and the potential spillover effects on others. For example, inclusive jobs, such as those that employ women, can change the way families spend money and invest in the education and health of children.  

All I need is the air that I breathe…

Anna Gueorguieva's picture

Also available in: 中文

Photo by Jens Schott Knudsen via Flickr CC

Recent research shows that air quality affects the productivity of high-skilled workers. What does this mean for developing cities?

City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.

Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.

The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.

Two ways to make Africa’s cities more livable, connected and affordable

Ede Ijjasz-Vasquez's picture

Urban population in Africa will double within the next 25 years and reach 1 billion people by 2040, but concentration of people in cities has not been accompanied by economic density.

Typical African cities share three features that constrain urban development and create daily challenges for businesses and residents: they are crowded, disconnected, and therefore costly, according to a new report titled “Africa’s Cities: Opening Doors to the World.”

Is this time really different? Will Automation kill off development?

Duncan Green's picture

Is this time really different? That’s the argument whenever people want to ignore the lessons of history (eg arguing that this particular financial bubble/commodity boom will never burst) and such claims usually merit a bucketload of scepticism. On the other hand (climate change, nuclear war) sometimes things really are different from everything that has gone before.

Which brings us to technology. Lots of musings are circulating about the rise of Artificial Intelligence, automation etc. Driverless cars will put millions of drivers out of work. Robots will kill off manufacturing jobs. Everything will change.

At the World Economic Forum, Klaus Schwab talks of ‘the fourth industrial revolution’. The bible is the Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies,  a 2014 book by Erik Brynjolfsson and Andrew McAfee. Even President Obama has caught the bug, in a recent profile in the New Yorker

‘At some point, when the problem is not just Uber but driverless Uber, when radiologists are losing their jobs to A.I., then we’re going to have to figure out how do we maintain a cohesive society and a cohesive democracy in which productivity and wealth generation are not automatically linked to how many hours you put in, where the links between production and distribution are broken.’

Which all raises a whole series of questions – is it true? If so, is that a Good/Bad Thing and for whom? Much too substantial for a blog post, but here are a few thoughts and links.

Three factors that have made Singapore a global logistics hub

Yin Yin Lam's picture
Then vs. now: the Port of Singapore circa 1900 (left) and today (right). Photos: KITLV/Peter Garnhum

When it gained independence in 1965, Singapore was a low-income country with limited natural resources that lacked basic infrastructure, investment and jobs.

A few decades later, the picture couldn’t be more different. Singapore has become one of Asia’s wealthiest nations, due in large part to its emergence as the highest-performing logistics hub in the region (see World Bank Logistics Performance Index).

The numbers speak for themselves. Today, the small city-state is home to the world’s largest transshipment container port, linked to over 600 ports worldwide. Singapore Changi airport is voted the best internationally, and is served by about 6,800 weekly flights to 330 cities. Finally, the island nation’s trade value amounts to 3.5 times its GDP.

Singapore’s achievements did not happen by chance. They result from a combination of forward-looking public policy and extensive private sector engagement. This experience could provide some lessons to any developing country seeking to improve its logistics network. Let us look at three key factors of success.

Realigning investment tax incentives to job opportunities

Sébastien Dessus's picture
Photo by: Gabriel/Flickr


The recent decline in global commodity prices is proving to be very costly for South Africa. The deterioration of South Africa’s terms of trade since 2012 cost at least four percentage points of gross domestic product (GDP) growth. This estimate does not account for some important indirect effects generated by the commodity price shock, including the heightened volatility of the rand and its impact on investment decisions. Instead of global monetary policy developments, commodity price volatility is now understood as being the main driver of exchange rate and capital account volatility in South Africa, and in emerging markets more generally. And 91% of European investors surveyed in the second half of 2014 identified the volatility of the rand as a major constraint to doing business in South Africa.

#4 from 2016: What is your challenge? Creating Jobs and Livelihoods for the bottom 40%

Parmesh Shah's picture
A farmer harvests mung beans in Cambodia's northern province. Our Top Ten blog posts by readership in 2016. This post was originally published on February 12, 2016.  

Extreme poverty in the world has decreased considerably over the past three decades. In 1981, more than half of citizens in the developing world lived on less than $1.25 a day. This rate has dropped dramatically to 21% in 2010. Moreover, despite a 59% increase in the developing world’s population, there were significantly fewer people living on less than $1.25 a day in 2010 (1.2 billion) than there were three decades ago (1.9 billion). However, 1.2 billion people still live in extreme poverty—an extremely high figure, so the task ahead of us remains herculean.

Among the poor, 78% live in rural areas, and 500 million of these are small farmers. Of these, 170 million are women farmers. Globally, 2.5 billion are dependent on small farms as a source of livelihood and employment.  Agriculture contributes one third of GDP in Africa and more than 65% of the workforce depends on this sector. There has been significant progress in increasing agricultural production and expansion of livelihood and economic opportunities in rural areas. There are about 40 million enterprises, from very small to medium-sized, involved in agribusiness. 

We gave Sri Lankan microenterprises wage subsidies to hire workers: 8 years after starting, here’s what happened

David McKenzie's picture

In my very first experiment, Suresh de Mel, Chris Woodruff, and I gave small grants of capital to microenterprises in Sri Lanka. We found that these one-time grants had lasting impacts on firm profitability for male owners. However, despite these increases in firm profits, few owners made the leap from self-employed to hiring others.
In 2008 we therefore started a new experiment with a different group of Sri Lankan microenterprises, trying to see if we could help them make this transition to becoming employers. Eight years later, I’m delighted to finally have a working paper out with the results.


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