Perspectives on labour economics for development/ Cazes,Sandrine [ed.]

Contents
Foreword
Acknowledgements xvii
List of abbreviadons xviii
1. Introduction and overview 1
1.1 Chapter summaries 4
Bibliography 6
2. The labour market in developing countries 7
2.1 The employment consequences of abundant labour and scarce capital 10
2.2 The persistence of informalit)' 14
2.3 Agriculture and the rural economy 15
2.3.1 The weather, international commodit)' prices and growth 16
2.3.2 Staying rural hut moving off the farm 17
2.3.3 Multjpie job-holding 17
2.4 Labour market structure and status in employment 18
2.4.1 Nt)n-market work: Work outside the scope of market transactions 18
2.4.2 The labour f{)rce participation of women and the level of
economic development 18
2.4.3 Status in employment 20
2.4.4 Productivity variance within — ostensibly — the same product markets 21
2.5 Structural transformadon or the evoludon of economic structure 22
2.5.1 A brief word on trade and employment changes 23
2.5.2 Concerns over the course of structural transformation 25
2.6 Human capital and investment capital 28
2.6.1 education and structural transformation 3O
2.7 Weak market integration 31
2.7.1 Infrastructure
2.8 Conclusion 33
Bibliography 34
3. Growth, distribution, employment and poverty. 39
3.1 Introduction 40
3.2 Growth, employment, incqualitx' and poverty reducdon:
Tlieorctica! insights and conceptual issues 40
3.3 What do country experiences teach us? 48
3.4 Suppordng the growth-employment—povert)' link through economic
and social policies 55
3.5 Conclusion 59
Bibliography 60
4. Informality 63
4.1 Introducdon 64
4.2 What is informality? 64
4.3 Measuring informalit)- 67
4.3.1 Methodological issue.s 67
4.3.2 How big is informalit)-? 69
4.4 Why does informalit)- exist? 69
4.4.1 Informalit)' as exclusion - 70
4.4.2 Informalit)- as choice 71
4.4.3 Two-tier informalit)- 72
4.5 What arc the characteristics of informalit)-? 72
4.5.1 The relevance of informalit)' 73
4.5.2 What do informal workers do? -78
4.5.3 Firms and entrepreneurs in the informal sector "79
4.5.4 The link bet\veen the formal and the informal economy 80
4.6 What is the policy response to informality?
4.6.1 Policy response to informalit)- as exclusion 81
4.6.2 Policy response to informality as choice
4.7 Conclusion
86
Bibliography
5. Wages in developing countries 89
5.1 Introduction 90
5.2 The determination of wages 90
5.2.1 The neoclassical theory of wage determination 91
5.2.2 The empirical evidence 92
5.2.3 What determines labour producri\'ity? 96
5.2.4 Economic development and wages with unlimited supplies of labour 99
5.2.5 Imperfect competition and the role of labour institutions 100
5.2.6 The macroeconomic perspective 102
5.3 The distribudon of wages 103
5.3.1 Characteristics of workers --men and women 104
5.3.2 Employer and industry characteristics 107
5.3.3 Labour market regulations: The example of minimum wages 108
5.3.4 The role of globalization 111
5.4 Conclusion 113
Bibliography 114
6. Labour migration and development:
A critical review of a controversial debate 119
6.1 Introduction 120
6.1.1 Labour migration trends and characteristics 121
6.2 The determinants of labour migration 130
6.2.1 Theoretical underpinning 130
6.2.2 Empirical evidence 133
6.3 The impact of labour migration on the home economy 137
6.3.1 Theory on the development impact of labour migration
on sending economies 137
6.3.2 Empirical evidence on the development impact of labour migration
on sending economies 140
6.4 The impact of labour migration on the hcjst economy 143
6.4.1 Theory on the consequences of labour migration in receiving economies 144
6.4.2 Empirical evidence on the consequences of labour migration
on receiving economies 1 144
6.5 Conclusion and policy discussion 146
Bibliography 148
7. Education and human capital 161
7.1 Introduction 162
7.2 Human capital 162
7.3 Education and the labour market 166
7.4 Education and growth 170
7.5 Education policies 174
7.6 Conclusion 178
Bibliography 179
8. Labour market institutions 183
8.1 Introduction 184
8.2 Employment protection legisladon 186
8.2.1 What is employment protection legislation? 186
8.2.2 Measures and cross-country comparisons 188
8.2.3 Theoretical background 194
8.2.4 Empirical evidence 198
8.2.5 Concluding remarks 201
8.3 Minimum wages 202
8.3.1 Minimum wage characteristics 202
8.3.2 Cross-country comparisons 203
8.3.3 Theoretical background 206
8.3.4 Empirical evidence 206
8.3.5 Concluding remarks 209
8.4 Unemployment benefits 209
8.4.1 Characterizing unemployment protection systems 210
8.4.2 Theoretical background 213
8.4.3 Empirical evidence 214
8.4.4 Concluding remarks 215
Bibliography 215
9. Labour market policies for development 223
9.1 Introduction 224
9.2 What are labour market policies and why use them? 226
9.3 Theoredcal and policy arguments for the udlizadon of
abour market policies 231
9.4 Labour market policies aroimd the world 233
9.5 Challenges to implemendng labour market policies in developing countries 236
9.6 Evidence from tbe global financial crisis of 2007-09 238
9.7 Do labour market policies work? Findings from the impact
evaluadon literature 243
9.8 Empirical findings 247
9.9 Conclusion 250
Bibliography 250
10. Labour market information and analysis systems 255
10.1 Introducdon 256
10.2 Conceptualizadon of LMIA systems 257
10.2.1 Functions, components and levels 258
10.2.2 Country examples 262
10.2.3 Lessons from country examples 266
10.3 Indicators 268
10.3.1 Sets of labour market indicators 268
10.3.2 MDG employment indicators as a framework for labour market analysis 271
10.3.3 Employment targets and projections 275
10.4 LMIA system development 278
10.4.1 Information, capacity and institutional assessment 278
10.4.2 Practical considerations 279
Bibliography 281