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Arvil V. Adams - The World Banks Treatment of Employment and Labor Market Issues (World Bank Technical Paper)

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title The World Banks Treatment of Employment and Labor Market Issues - photo 1

title:The World Bank's Treatment of Employment and Labor Market Issues World Bank Technical Paper, 0253-7494 ; No. 177
author:Adams, Arvil V.
publisher:World Bank
isbn10 | asin:0821321641
print isbn13:9780821321645
ebook isbn13:9780585236261
language:English
subjectLabor market--Developing countries, Wages--Developing countries, World Bank.
publication date:1992
lcc:HD5852.W66 1992eb
ddc:331.12/091724
subject:Labor market--Developing countries, Wages--Developing countries, World Bank.
Page i
WORLD BANK TECHNICAL PAPER NUMBER 177
The World Bank's Treatment of Employment and Labor Market Issues
Arvil Van Adams
with Gail Stevenson, Terence Kelly, Andrew Noss, Omporn Regel, and Yang-Ro Yoon
The World Bank
Washington, D.C.
Page ii
Copyright 1992
The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing June 1992
Technical Papers are published to communicate the results of the Bank's work to the development community with the least possible delay. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. Any maps that accompany the text have been prepared solely for the convenience of readers; the designations and presentation of material in them do not imply the expression of any opinion whatsoever on the part of the World Bank, its affiliates, or its Board or member countries concerning the legal status of any country, territory, city, or area or of the authorities thereof or concerning the delimitation of its boundaries or its national affiliation.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, 27 Congress Street, Salem, Massachusetts 01970, U.S.A.
The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, Department F, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Ina, 75116 Paris, France.
ISSN: 0253-7494
In the Education and Employment Division of the Population and Human Resources Department of the World Bank, Arvil Van Adams is senior economist, Gail Stevenson, Terence Kelly, Andrew Noss, and Yang-Ro Yoon are consultants, and Omporn Regel is research analyst.
Library of Congress Cataloging-in-Publication Data
The World Bank's treatment of employment and labor market issues /
Arvil Van Adams with Gail Stevenson...[et al.].
p. cm.(World Bank technical paper; no. 177)
Includes bibliographical references.
ISBN 0-8213-2164-1
1. Labor marketDeveloping countries. 2. WagesDeveloping
countries. 3. World Bank. I. Adams, Arvil V. II. Stevenson,
Gail. III. International Bank for Reconstruction and Development.
IV. Series HD5852.W66 1992
331.12'091724dc20 92-20314
CIP
Page iii
Abstract
The performance of labor markets is important both for the smooth functioning of the economy, and in providing accurate signals about labor supply and demand to the education and training sector. This examination of Bank country economic and sector reports from 1985-90 finds increasing attention to labor market issues over time. Wages and unemployment are the issues most often and most thoroughly treated in economic reports. Issues are treated most often and comprehensively in rapidly-growing countries with high levels of human resource development (high primary enrollment rates). While the Bank has given attention to labor market issues in the analysis of country economic and education sector reports, these issues have not been accorded priority in the policy dialogue with governments. The best predictor of attention to labor market issues in the policy dialogue is thorough analysis. More attention to labor markets early in the Bank-country dialogue will help build support for politically-sensitive labor market reforms and lead to better integration of labor market issues into the policy dialogue.
Page v
Foreword
Flexible markets for goods and services, as well as for the labor and capital used in their production, are important to the ability of economies to adjust to external shocks. Global recessions and energy crises, among other events, can alter the balance of demand and supply forces. Restoring this balance requires prices that are free to move in response to demand and supply pressures and low barriers to the movement of resources among markets. The failure of markets to respond to these forces can result in unstable prices and persistent shortages of certain goods and surpluses of others. The wastage that results from these imbalances is an impediment to sustained economic growth and poverty alleviation.
On average, labor accounts for about two-thirds of the value of goods and services produced by countries. The ability of labor to adjust to demand and supply imbalances is therefore an important factor to economic adjustment. Potential impediments to the flexibility of labor markets include market failures in the form of imperfect information involving economic opportunities, monopolistic behavior by employer and worker organizations, and government policy interventions affecting wages and labor mobility. The latter may include, for example, government interventions in wage setting that create rigidities impeding the ability of labor markets to signal emerging employment and skill needs.
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