By Pierre-Richard Agenor, Alejandro Izquierdo, Henning Tarp Jensen
Pierre-Richard Agenor's pioneering paintings on built-in Macroeconomics types for Poverty research (IMMPA) is cataloged for the 1st time during this must-read volume.A category of dynamic computable basic equilibrium versions, IMMPA versions are designed to research the effect of adjustment regulations on unemployment and poverty within the constructing international. together with either papers initially circulated throughout the global financial institution, in addition to new fabric that locations this significant paintings in its higher context, Adjustment rules, Poverty, and Unemployment information the heritage and makes use of of those types up to now, in addition to pointing to destiny advancements for his or her usage.
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Additional resources for Adjustment Policies, Poverty, and Unemployment: The IMMPA Framework
Sample text
Downes et al. (2003) found that labor market regulations in English-speaking Caribbean countries had only a limited impact on employment creation; output growth was the key factor. Thus, whether or not reducing firing costs would help to reduce unemployment by enhancing labor market flexibility (through increased worker turnover into and out of the pool of the unemployed), as advocated by some, is an open question. AGENOR: “CHAP01” — 2006/11/9 — 12:35 — PAGE 17 — #10 18 Chapter 1 Nonwage Labor Costs and Unemployment Benefits Nonwage labor costs include social security contributions and nonwage benefits, such as housing, health care, pensions, subsidized transportation and meals, and family allowances.
8 Empirical studies of the impact of job security regulations on employment in developing countries are scarce. Restrictions on layoffs in the formal sector often make firing redundant (or unproductive) workers difficult. Although in practice enforcement is not uniform across sectors and skill categories, regulating the workplace with severe restrictions on firing and generous severance pay may have a perverse effect on hiring: more stringent job security provisions may reduce hiring rates (by increasing the fear of incurring expensive dismissal costs in the future) and raise the duration of unemployment.
Nevertheless, available data suggest that open unemployment is often concentrated in urban areas and is mostly associated with wage employment, and that underemployment is far more pervasive than open unemployment. In some countries, open and disguised unemployment combined amount to as much as 70 percent in proportion of the labor force. In recent years several regions have experienced a sharp increase in open unemployment, most particularly the Middle East and North Africa (MENA), and Latin America.