Labor Markets in Latin America and the … Markets in Latin America and the Caribbean & IDB Agenda...
Transcript of Labor Markets in Latin America and the … Markets in Latin America and the Caribbean & IDB Agenda...
Labor Markets in Latin America and the
Caribbean& IDB Agenda
May 6th, 2011
Laura RipaniSenior Economist
Labor Markets and Social Security UnitInter-American Development Bank
Agenda
Labor markets in Latin America and the Caribbean (LAC)Labor markets in Latin America and the Caribbean (LAC)
Examples of IDB projects in the region
Key action areas for the IDB in labor markets
Labor markets in the LAC region
Characteristics of LAC economies motivate and at
the same time condition labor policies
4
Relative productivity loss of LAC versus US…
Evolution of GDPpc, TFP, factors accumulation, relative to US
5
Productivity tends to be higher in larger firms
The problem: too many small (low-
productivity) firms…
25
30
35
40
45
50
po
rcen
taje
trab
ajo
)
América Latina: Alto porcentaje de autoempleo en relación a su nivel de ingreso
7
0
5
10
15
20
0 5'000 10'000 15'000 20'000 25'000 30'000 35'000 40'000 45'000
Au
toem
ple
o(p
orc
enta
jefu
erza
de
trab
ajo
Ingreso per capita, dolares USA de 2005, ajustado por P.P.P.
Developed countries Latin America Rest of the world
Fuente: BID en base a Perry y otros (2007), OIT (2009a) y Banco Mundial (2009).
High job rotation, particularly for least protected workers
0.25
0.3
Transitions between formality and informalityPeople with incomplete secondary or less
Age: 25-65
8
0
0.05
0.1
0.15
0.2
Argentina (95-01) Venezuela (95-02) Mexico (90-01)
F-I
I-F
High inequality:
Income share held by highest 10%(2005-2009)
Source: World Bank
Youth unemployment rates are above 20% and are
about 3 times as high as the rates observed for adults
4.1
3.8
3.7
3.4
3.4
3.4
3.3
3.3
3.3
3.2
3.1
3.0
2.83.0
3.5
4.0
4.5
UR ratio youth/adults
10
2.8
2.5
2.4
2.4
2.3
2.0
2.5
Uru
guay
Jam
aica
Par
agua
y
Cos
ta R
ica
Bol
ivia
Arg
entin
a
Mex
ico
Ecu
ador
Pan
ama
Chi
le
Gua
tem
ala
Bra
zil
Per
u
Hon
dura
s
Col
ombi
a
Dom
inic
an
Rep
.
Ven
ezue
la, R
B
Source: own calculations using the most recent household survey for each country. Youth is
defined as 15-24 years old, adults as 25-65 years old
On average, women are 1.6 times more likely to
be unemployed than men
10%
15%
20%
25%
Male Female
11
0%
5%
Col
ombi
a
Chi
le
Arg
entin
a
Dom
inic
an R
ep.
Cos
ta R
ica
Jam
aica
Bra
zil
Ven
ezue
la, R
B
Mex
ico
Uru
guay
Bol
ivia
Par
agua
y
Per
u
Hon
dura
s
Ecu
ador
Pan
ama
Gua
tem
ala
Source: own calculations using the most recent household survey for each country.
High informality: Percentage of salaried workers not covered by SS
30.0
40.0
50.0
60.0
70.0
80.0
Pe
rce
nt
Average: 43.2
Source: SCL/LMK ca lculations based on household surveys data.
69
.3
67
.4
65
.4
63
.4
61
.1
56
.6
54
.3
49
.9
48
.4
36
.6
35
.7
34
.1
29
.7
28
.6
27
.8
18
.7
16
.2
14
.7
0.0
10.0
20.0
Pa
rag
ua
y
Bo
livi
a
Nic
ara
gu
a
Ho
nd
ura
s
Gu
ate
ma
la
Ecu
ad
or
Pe
ru
Me
xico
El S
alv
ad
or
Ve
ne
zue
la, R
B
Arg
en
tin
a
Co
lom
bia
Bra
zil
Do
min
ica
n R
ep
.
Pa
na
ma
Uru
gu
ay
Ch
ile
Co
sta
Ric
a
Pe
rce
nt
In summary, LAC countries face big challenges
Improve
workers
13
Increase
productivity
Reduce
informality
Reduce
inequalities
workers
protection in
a context of
high rotation
& aging
population
Key action areas for the IDB in labor marketsKey action areas for the IDB in labor markets
New Labor Markets and Social Security
Unit
• Created January 1st, 2009
• Responsible for Bank operations, research and policies in the sector of labor markets (training and intermediation) and social insurance (pensions, intermediation) and social insurance (pensions, access to health insurance, unemployment insurance)
• Objective: applying high quality research and analysis directly into loan operations
Main programs at the IDB in Labor Markets
- Loans: ~ $4 billion dollars since 1996
Key Areas for Skills Development
� Demand-based Training Systems
– Financing programs to link the unemployed (most vulnerable groups) to
real vacancies in the productive sector + employers surveys to identify
skills demands.skills demands.
– Financing the definition of labor standards and accreditation systems with
the productive sector.
– Incentives for co-financing mechanisms
� New models for Labor Intermediation Systems- Financing the creation of integrated systems (training and intermediation)
with only one entrance door
� Supporting Impact Evaluations of these programs
� Supporting Labor Markets Information Systems
Mexico
Honduras
Haiti
Dominican Republic
Nicaragua(dialogue)
ColombiaPanama
Costa Rica
El Salvador(dialogue)
Guatemala(dialogue)
Bahamas
IDB Skills Development Support(Analytical and Financial)
Brazil(state of Rio de Janeiro)
Costa Rica (dialogue)
Peru
Bolivia
Chile Uruguay
Paraguay
Skills Development Goal
The Unit of Labor Markets and Social Security is dedicated to:support countries in LAC to have better policies and programs in order better policies and programs in order to improve coverage, quality, pertinence and financial sustainability of training and lifelong learning in LAC
» What are we doing in 2011? General� Institutional analysis � Characterization of labor supply (HH surveys) � Toolkit for performance management and monitoring
» What are doing in 2011? Youth
� (Quantitative) Impact evaluations for different modalities of training (mostly for youth): DR (ex), PE (ex), MX, PN, HO
� (Qualitative) In depth analysis of key success factors
These days…analytical in skills development
� (Qualitative) In depth analysis of key success factors � Labor dynamics analysis for different sub-groups (youth &
adults)� Unemployment duration / formal-informal transitions, etc.
» What are doing in 2011? Employed
� (Quantitative) Analysis of existing LAC employer surveys (incidence and intensity of training) + new generation of productivity-training surveys
� (Qualitative) Good practices / lessons learned from specific firms that train the most (LAC vs OECD)
» What are we doing in 2011? Loans:
� The Dominican Republic (integrated ~ employment services + training (mostly youth))
� Honduras (integrated ~ employment services + training) � Haiti (training funds)� Paraguay (training for youth)� Peru (labor reforms)
These days…operational in skills development
� Peru (labor reforms)� Colombia (technical training reform)� Rio de Janeiro (Brazil) (training for vulnerable youth in favelas)
Examples of IDB projects in the region(“if we have time” slides)(“if we have time” slides)
Example of Labor Market Insertion Program
Dominican Republic:
Youth and Employment Program
• Provides training (in class + on-the-job) to increase employability of disadvantaged youth (16-29 years old with less than high-school educ.)
• Co-executed by Ministry of Labor and INFOTEP (national • Co-executed by Ministry of Labor and INFOTEP (national training institute)
• Rigorous impact evaluation (randomization)
• Positive impact: beneficiaries find better jobs after the training (with health insurance benefits, and higher wages)
Example of analytical product
Employers’ surveys
• Diagnostic instrument to:– have information on the way companies identify
productivity problems and the means they use to increase it:
• how much and how they invest in training their Bahamas Uruguay Panama Honduras
• how much and how they invest in training their workers; what is the frequency, relevance and effectiveness of training; who are the main suppliers;
• What are their policies and tools for job placement.• What skills are more difficult to find; what skills
they value the most; • Etc, etc...
Thanks!