Globalization And Informal Jobs In Developing Countries

World trade has expanded significantly in recent years, making a major contribution to global growth. Economic growth has not led to a corresponding improvement in working conditions and living standards for many workers. In developing countries, job creation has largely taken place in the informal economy, where around 60 per cent of workers are employed. Most of the workers in the informal economy have almost no job security, low incomes and no social protection, with limited opportunities to benefit from globalization. This study focuses on the relationship between trade and the growth of the informal economy in developing countries. Based on existing academic literature, complemented with new empirical research by the ILO and the WTO, the study discusses how trade reform affects different aspects of the informal economy. It also examines how high rates of informal employment diminish the scope for developing countries to translate trade openness into sustainable long-term growth. The report analyzes how well-designed trade and decent-work friendly policies can complement each other so as to promote sustainable development and growing prosperity in developing countries. Book jacket.

This study focuses on the relationship between trade and the growth of the informal economy in developing countries. Based on existing academic literature, complemented with new empirical research by the ILO and the WTO, the study discusses how trade reform affects different aspects of the informal economy. It also examines how high rates of informal employment diminish the scope for developing countries to translate trade openness into sustainable long-term growth.

Provides evidence for policy makers on how to deal with informal employment in developing and developed countries alike.

This survey assembles recent theoretical and empirical advances in the literature on economic informality and analyzes the causes and costs of informality in developed and developing economies. Using recent evidence, the survey discusses the nature and roots of informal economic activity across countries, distinguishing between informality as the result of exclusion and exit. The survey provides an extensive review of recent international experience with policies aimed at reducing informality, in particular, policies that facilitate the formalization process, create a framework for the transition from informality to formality, lend support to newly created firms, reduce or eliminate inconsistencies across regulation and government agencies, increase information flows, and increase enforcement.

Since the early 1990s, most developing economies have become more integrated with the world s economy. Trade and foreign investment barriers have been progressively lifted and international trade agreements signed. These reforms have led to important changes in the structures of these economies. The labor markets have adjusted to these major changes, and workers were required to adapt to them in one way or another. In 2006, the Social Protection Unit of the World Bank launched an important research program to understand the impact that these profound structural changes have had on workers in developing countries. 'Globalization, Wages, and the Quality of Jobs: Five Country Studies' presents the findings and insights of this important research program. In particular, the authors present the similar experiences of low-income countries with globalization and suggest that low-income countries working conditions have improved in the sectors exposed to globalization. However, 'Globalization, Wages, and the Quality of Jobs' also highlights concerns about the sustainability of these improvements and that the positive demonstration effects on the rest of the economy are unclear. The empirical literature that exists, although vast, does not lead to a consensus view on globalization s eventual impact on labor markets. Understanding the effects of globalization is crucial for governments concerned about employment, working conditions, and ultimately, poverty reduction. Beyond job creation, improving the quality of those jobs is an essential condition for achieving poverty reduction. 'Globalization, Wages, and the Quality of Jobs' adds to the existing literature in two ways. First, the authors provide a comprehensive literature review on the current wisdom on globalization and present a micro-based framework for analyzing globalization and working conditions in developing countries. Second, the authors apply this framework to five developing countries: Cambodia, El Salvador, Honduras, Indonesia, and Madagascar. This volume will be of interest to government policy makers, trade officials, and others working to expand the benefits of globalization to developing countries.

Active labor market policies (ALMPs) are found in almost all countries of the world but differ in amplitude, design, and implementation. Comprising an array of measures, ALMPs can take the form of special support for job searching, training and education for the unemployed, and various other subsidies and job creation activities. While providing a valuable overview of the nature of these policies, this book examines some of the pitfalls and challenges countries face when evaluating them. It also provides a policy framework for designing ALMPs that are permanent yet adaptable instruments to cope with changes linked to globalization. Contents Introduction Historical background of ALMPs Definition and functions of ALMPs Contribution of ALMPs to the objectives of employment creation, security in change, equity and poverty reduction Differences in the utilization of ALMPs: Developed, transition and developing countries Evaluation of ALMPs New trends in ALMPs Conclusions: A framework for the management of change Bibliography

This thoroughly researched volume surveys the nature and extent of 'informal' work in Asia, which is a powerful and under-studied force in the region. After over half a century of development, even in the fast growing economies of Asia, the formal sector, and industrial jobs have grown rather slowly, and most non-agricultural employment growth has occurred in the informal economy. At the same time as this, there has been a feminization of informal workers and growth in subcontracted homework. Drawing on detailed case studies carried out in five Asian countries - two low income (India and Pakistan) and three middle income (Indonesia, Thailand and the Philippines) – where subcontracted production, usually by women and children working out of home, is now widespread, this insightful book acknowledges that home-based work is the source of income diversification for poor families, but is also the source of exploitation of vulnerable workers and child labour as firms attempt to contain costs. This wide-ranging and accessible survey, edited by key specialists in this field, along with an impressive team of contributors, examines the social protection needs of these workers arguing convincingly for public action to promote such work and protect these workers as a possible new labour intensive growth strategy in developing countries.