Pending Issues In Protection, Productivity Growth, And Poverty Reduction

Abstract

This paper selectively synthesizes much of the research on Latin American and Caribbean labor markets in recent years. Several themes emerge that are particularly relevant to on going policy dialogues. First, labor legislation matters, but markets may be less segmented than previously thought. The impetus to voluntary informality, which appears to be a substantial fraction of the sector, implies that the design of social safety nets and labor legislation needs to take a more integrated view of the labor market taking into account the cost-benefit analysis workers and firms make about whether to interact with formal institutions. Second, the impact of labor market institutions on productivity growth has probably been underemphasized. Draconian firing restrictions increase litigation and uncertainty surrounding worker separations, reduce turnover and job creation, and poorly protect workers. But theory and anecdotal evidence also suggest that they, and other related state or union induced rigidities, may have an even greater disincentive effect on technological adoption, which accounts for half of economic growth. Finally institutions can affect poverty and equity, although the effects seem generally small and channels are not always clear. Overall, the present constellation of labor regulations serves workers and firms poorly and both could benefit from substantial reform.

Households’ Risk Management and Coping Strategies: How do the Poor Respond to Various Idiosyncratic and Covariate Shocks in Pakistan?

“…According to these studies, in times of covariate shocks such as flood, rise in prices, or other weather-related shocks, the overall effects are worse for the poor, because the mutual assistance networks fail to exist due to limited resources held by such households. Similarly, Cunningham et al (2005), while highlighting the experiences of Latin America, also assert that resource pooling among households is possible under normal conditions, but often fails in cases of prolonged economic downturns. Another study by the World Bank shows how the civil conflict in Côte d'Ivoire affected informal kinship-based safety nets as individuals preferred to assist nuclear family members rather than the community, thus reducing coverage.…”

COODTUR IV. Turismo, desarrollo territorial, innovación y gobernanza, żhacia donde vamos?

“…Véase tambiénBarros, 1991; Calderón y Chong, 2005;Arias et al , 2005 y Mico y Pagés, 2006. 7 Columna de Paulo R.,Haddad, en el Diario O Estadao del 18 de agosto de 2008.…”