Employment in Crisis : The Path to Better Jobs in a Post-COVID-19 Latin America / Joana Silva [and three others].

Format:

Book

Author/Creator:

Silva, Joana, author.

Series:

World Bank Latin American and Caribbean studies.

World Bank Latin American and Caribbean Studies

Language:

English

Subjects (All):

COVID-19 (Disease)--Economic aspects.

COVID-19 (Disease).

Labor market--Latin America.

Labor market.

Latin America--Economic policy.

Latin America.

Physical Description:

1 online resource (pages cm)

Edition:

First edition.

Place of Publication:

Washington, DC : World Bank Group, [2021]

System Details:

data file

Summary:

A better policy framework for preventing, managing, and helping people recover from crises is crucial to lifting long-term growth and livelihoods in Latin America and the Caribbean (LAC). The need for this policy framework has never been more urgent as the region faces the monumental task of recovery from the worldwide COVID-19 pandemic. Whether specific policy responses will deliver the expected growth dividends will depend on the underlying vision of how labor markets adjust to crises and the quality of the policies enacted. This report estimates how crises change labor market flows, assesses how these changes affect people, and discusses the key policy responses-- Provided by publisher.

Contents:

Front Cover

Contents

Foreword

About the Authors

Acknowledgments

Executive Summary

Abbreviations

1 Overview

Rationale for this report

Road map

Key insights

Three dimensions of the policy response

Implications for the COVID-19 crisis

Notes

References

Annex 1A: Background papers written for this report

2 The Dynamics of Labor Market Adjustment

Introduction

Labor market flows: Unemployment versus informality

Job destruction and job creation in times of crisis

A changing employment structure and the disappearance of good jobs

Conclusion

Annex 2A: Additional analysis of employment transitions

3 The Impact on Workers, Firms, and Places

Workers: A bigger toll on the unskilled

Firms: The cost of limited market competition

Places: The role of local opportunities and informality

4 Toward an Integrated Policy Response

Three key policy dimensions

Aggregate: Stronger macroeconomic stabilizers

Social protection and labor systems: Cushioning the impact on workers and preparing for change

Structural: Greater competition and place-based policies

Boxes

Box 4.1 Family allowances as de facto unemployment insurance

Box 4.2 Brazil's social protection response to the COVID-19 (coronavirus) pandemic

Box 4.3 Latin America and the Caribbean's social protection and labor responses to the COVID-19 (coronavirus) contraction of 2020

Box 4.4 Permanent, systemic shocks: Responses to job dislocation caused by structural changes

Box 4.5 How well have regional policies performed at strengthening economic opportunities?

Box 4.6 Evidence on the effects of place-based policies on mobility and labor market outcomes

Figures.

Figure 1.1 Persistent employment loss following crises: The myth of economic recovery

Figure 1.2 How adjustment works and the policies that can smooth it

Figure 1.3 Stabilizers and macroeconomic frameworks: Policy reforms

Figure 1.4 Addressing crises' impacts and preparing workers for change: Policy reforms

Figure 1.5 Tackling structural issues that worsen the impacts of crises on workers

Figure 2.1 Quarterly fluctuations in unemployment and GDP growth, 2005-17

Figure 2.2 Quarterly net flows into formal and informal employment, 2005-17

Figure 2.3 Part-time work as a margin of adjustment in Argentina, 2005-15

Figure 2.4 Quarterly job loss, formal and informal sectors, 2005-17

Figure 2.5 Quarterly net job finding rates, formal and informal sectors, 2005-17

Figure 2.6 Gross job flows in Brazil and Ecuador, formal sector

Figure 2.7 Gross job flows and differential rates in large and small firms in the formal sector

Figure 2.8 Net job creation rates in Brazil and Ecuador's formal sectors

Figure 2.9 Quarterly share of workers entering unemployment per wage decile, formal and informal sectors, 2005-17

Figure 2.10 Impulse response functions, by type of employment, during the 30 months after the beginning of the recession

Figure 2.11 Estimates of Okun's Law for countries in the LAC region, 1991-2018

Figure 2A.1 Quarterly net flows into part-time work, formal and informal sectors, 2005-17

Figure 3.1 Effect on wages of displacement caused by plant closings in Mexico

Figure 3.2 Unemployment rates by cohort, Argentina and Colombia

Figure 3.3 Employment and wage effects of higher local unemployment at labor market entry in Mexico

Figure 3.4 Dynamic effects of the global financial crisis on workers

Figure 3.5 Heterogeneity in effects of the global financial crisis across workers.

Figure 3.6 Dynamic effects of the global financial crisis on workers by skill

Figure 3.7 Dynamic effects of the global financial crisis on firms

Figure 3.8 Effects of the global financial crisis on Brazilian workers depending on sectoral concentration and state ownership

Figure 3.9 Effects of the global financial crisis on Brazilian workers depending on local labor market informality

Figure 4.1 How adjustment works and a triple entry of policies to smooth it

Figure 4.2 Wage and unemployment responses during crises in the 2000s versus crises in the 1990s, Brazil and Mexico

Figure 4.3 Sensitivity of unemployment and wages to output fluctuations

Figure 4.4 Stabilizers and macroeconomic frameworks: Policy reforms

Figure 4.5 Effective coverage of unemployment benefits, selected countries, latest available year

Figure 4.6 Economic cycle, unemployment, and spending on labor policies and programs

Figure 4.7 Level and composition of government spending on social assistance transfer programs, selected LAC countries

Figure 4.8 Insufficient support, with many left behind

Figure 4.9 Coverage of social registries and support received through social assistance programs during the COVID-19 (coronavirus) pandemic

Figure 4.10 Expansion of cash transfer programs in response to crises

Figure B4.2.1 Brazil's COVID-19 (coronavirus) social protection and labor response strategy for two major vulnerable groups

Figure 4.11 Positive effects of welfare transfers on local formal employment

Figure B4.3.1 Stylized social protection and labor policy responses to the 2020 COVID-19 pandemic

Figure 4.12 Employment and reemployment policies, by the nature of the shock causing displacement

Figure 4.13 Addressing crises' impacts and preparing for change: Policy reforms.

Figure 4.14 Employment protection legislation in OECD member countries and selected Latin American countries, 2014 or most recent data

Figure 4.15 Regulation of employment in the LAC countries, circa 2019

Figure 4.16 Flexibility of labor regulation and spending on human capital and labor programs in selected countries in LAC compared to other regions

Figure 4.17 Labor market regulation instruments and the duration of unemployment

Figure 4.18 Tackling structural issues that worsen the impacts of crises on workers

Map

Map 4.1 Unemployment insurance throughout the world

Tables

Table 1A.1 Background papers written for this report

Table 2.1 Cyclical components of GDP growth, the unemployment rate, and net flows out of the labor force

Table 2.2 Cyclicality of net flows across sectors and out of employment, 2005-17

Table 2.3 Correlation of job loss across sectors

Table 2A.1 Cyclicality of employment transitions, by gender and skill level

Table 3.1 Presence of negative effects on employment and wage scarring, by gender and education

Table 4.1 Landscape of formal unemployment income support in the LAC region.

Notes:

Description based on print version record.

Includes bibliographical references.

ISBN:

9781464816918

1464816913

OCLC:

1276857644

Publisher Number:

10.1596/978-1-4648-1672-7