Theoretical Underpinnings of Jobs Diagnostics

Hernan Jorge Winkler and Alvaro Gonzalez

No 31902891, Jobs Group Papers, Notes, and Guides from The World Bank

Abstract: This paper is a work-in-progress and was developed to advance our thinking on how to make Jobs Diagnostics more strategic and to explore how guidance can best bridge the link from jobs analysis through prioritization, to recommendations. It will continue to evolve as we undertake more diagnostics. The role of Jobs Diagnostics is to help operational teams think more deeply about evidence, guide them towards priority problems and understand the constraints to better jobs outcomes with economic growth, and their likely causes. We believe a better link from standardized diagnosis to recommendations is needed, while recognizing that a single formulaic framework is not desirable. In general, Jobs Diagnostics guidelines should help contribute to thinking about causes of jobs problems identified in data tests, with priorities for policies and operations should be based on evidence and not be left too open to discretion. This is a first attempt to help practitioners narrow down Jobs problems, think deeply about their causes, and prioritize between possible solution areas. Thus, the examples given in this paper are not exhaustive, and its recommendations are not meant to be prescriptive. The guidance will be refined in the coming years, as more practical examples emerge and we gain further lessons in strategic prioritization.

Keywords: transition from school to work; high rate of population growth; rates of return to education; independent central bank; labor productivity; labor market outcome; labor force participation rate; marginal product of labor; law of one price; marginal productivity of labor; employment elasticity of growth; public investment in infrastructure; low returns to education; low levels of income; increasing labor force participation; Cost of Doing Business; degree of market concentration; public sector pay policy; source of market failure; share of total spending; real exchange rate appreciation; public provision of infrastructure; school to work transition; increase in labor; Center for Economic Studies; public provision of education; labor market model; demand for labor; working age population; formal sector employment; number of workers; net job creation; share of employment; labor market indicator; labor productivity growth; unit labor costs; Labor market rigidities; labor market rigidity; unpaid family worker; private sector wage; labor demand curve; value added; wage employment; returns to capital; low labor productivity; labor income; demand for good; lack of competition; supply of labor; absence of market; efficiency of capital; availability of data; high productivity jobs; types of firms; informal labor market; share of wage; movement of worker; number of jobs; flow of worker; firm level analysis; analysis of trends; gender wage gap; per capita income; formal sector worker; demand for worker; labor market structure; low income economy; barrier to entry; growth and development; entire labor force; manufacturing labor force; real wage; labor market development; transmission and distribution; labor market behavior; terms of trade; employment in agriculture; implementation of policies; labor productivity level; access to capital; quality of job; cause for concern; human capital investment; human capital endowment; educated labor force; public sector job; public sector wage; wages and salary; living standard measurement; peer group comparison; economies of scale; investment in capital; high compliance costs; policy or regulation; difference in wages; perfectly competitive model; competitive exchange rate; public service delivery; exchange rate policy; public health measures; social insurance payments; labor force working; price of labor; urban labor force; failure to thrive; use of capital; average employment size; new employment opportunity; composition of employment; rapid population growth; formal sector wage; income support payment; Public Sector Failure; better land use; public sector intervention; exchange rate management; private sector provision; rates of urbanization; lack of skill; labor market information; market clearing wage; degree of competition; movement of labor; decline in agriculture; labor force growth; minimum wage regulation; lower income countries; literacy and numeracy; low level equilibrium; fees and charge; real economic growth; lack of competitiveness; initial equilibrium level; tertiary training institution; Access to Electricity; supply of worker; crime and violence; total labor force; labor sector; level of employment; lack of demand; human capital level; export processing zone; private sector performance; technical vocational education; private sector job; foreign exchange transaction; labor saving technology; total wage bill; investment climate reform; small business economics; labor market transition; labor market distortion; aggregate productivity growth; private sector demand; law and economics; low education outcome; share of labor; city road network; high unemployment rate; private sector lending; random effects model; reallocation of resource; partial equilibrium model; old age dependency; temporary work permit; sectoral growth rate; removal of barrier; special economic zone; Poverty and Equity; tax return data; high wage premium; return to investment; public sector employment; high fixed cost (search for similar items in EconPapers)
Pages: 78
Date: 2020-03-20
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