Informality and Globalization

Slides:



Advertisements
Similar presentations
April 25, 2005 PREM Learning Week Wendy Cunningham (LCSHS) * This presentation is based on the book Minimum Wages and Social Policy: Lessons from Developing.
Advertisements

Education for What: The Rising Demand for Skill and the Decline of Manual Labor Stephen J. Rose State Higher Education Executive Officers July 12, 2012.
Peru The Great Depression.
Latin America Population & Settlement Ch 4 section 2.
Lessons from NAFTA William Maloney, Luis Serven World Bank Canadian Standing Senate Committee on Foreign Affairs
Global Poverty 1 Lecture 22.
Trade Liberalization Lecture # 14 Week 7. Structure of this lecture Theoretical arguments for trade liberalization Reasons for liberalizing trade in Latin.
1 BA 187 – International Trade Krugman & Obstfeld, Chapter 7 International Factor Movements.
Slide 0 U.S. Unemployment, Natural Rate of Unemployment  Natural rate of unemployment: the average rate of unemployment around which the economy.
Slide 0 CHAPTER 6 Unemployment In Chapter 6, you will learn… …about the natural rate of unemployment:  what it means  what causes it  understanding.
ECONOMIC DEVELOPMENT OF LATIN AMERICA STUDY GUIDE.
North Carolina in the Global Economy. North Carolina in the World Economy I: Job Losses From Imports : 87,000 Manufacturing Jobs Disappeared.
The Great Depression A Global Issue. U.S Economy Following World War I Immediately following war there was brief slowdown – economy exploded during the.
Labor Market: Panama vs. Costa Rica Joyce Kwan Nicoll Zapata.
Trade Adjustment Assistance as a Model for Unemployment Insurance Reform Howard Rosen National Academy of Social Insurance January 19, 2006.
Labor Markets in Brazil, Poland and Singapore Melissa Epstein Gus Giacoman Ricardo Saias Vilas Abraham The Global Economy Group Project #4 – Labor and.
Memorial Hospital’s Economic Impact on the Community Date.
Macroeconomics I Lecture 9. October 2, 2007 Robert TCHAIDZE.
Chapter Nine Local Marketing in New Growth Markets.
Two Approaches to Measuring “Green” Mark Doms Chief Economist Department of Commerce Association of Public Data Users, September 19, 2010.
Labor Market Trends Chapter 9, section 1.
Economic, Social, and Political Environments Chapter 3 © 2012 Nelson Education Ltd.
Janine Berg ILO-Brasilia Understanding and Responding to the Labour Impact of Globalization RIAL Workshop “Labour Dimension of Globalization” Santo Domingo,
INTER-AMERICAN MECHANISM TO PROMOTE DECENT WORK. LABOUR PANORAMA UNEMPLOYMENT RATE Sources: ILO, BLS, self-elaborated *1994www.statcan.ca.
CREATING MORE AND BETTER JOBS: WHAT DO WE KNOW? WHAT IS NEEDED? WHAT CAN BE DONE? Marty Chen Harvard University WIEGO Network World Bank-OECD Policy Forum.
Informality and Globalization W.F. Maloney Office of the Chief Economist Latin America and Caribbean World Bank LACML/OAS May 2004 Washington, DC.
Ten Propositions on Labor Market Rigidity Martin Rama The World Bank XVIII Meeting of Latin American Network of Central Bank and Finance Ministries Inter-American.
Changing Skills Demand in the Workplace: Global and Regional Perspectives Seminar Growth Strategies for Secondary Education in Asia September 19-21, 2005.
From Commodity Booms to the Knowledge Economy Center for Hemispheric Policy, May 2008 W. F. Maloney Office of the LAC Chief Economist Latin America and.
The Distribution of Recent Economic Gains: Some early observations Ben Dolman.
The National Export Initiative: Doubling Exports Mark Doms Chief Economist, Department of Commerce.
1 Where is the World Heading in 2009? Simeon Djankov Chief Economist. Finance and Private Sector World Bank Group UPC Annual Conference Lima, December.
IGCSE®/O Level Economics
Tulsa Area Forecast 2016 Tulsa Regional Chamber Economic Outlook Conference December 2, 2015 Bob Ball Tulsa Regional Chamber.
Toronto’s Agenda for Prosperity Presentation to YEP/TTB Information Session November 13, 2009.
The global crisis and employment in Africa Shanta Devarajan World Bank
The 1960s “Push for Communism” Castro identified the following as the major problems facing Cuba Land Industrialization He attempted to improve the Cuban.
Modern Labour Economics Chapter 2 Overview of the Labour Market.
Might Not be the Central Narrative of Mexico’s Economic Development during the Past 40 Years Daniel Lederman Deputy Chief Economist Latin America.
ECONOMIC DEVELOPMENT IN MEXICO. HISTORICAL TRENDS  history of dependence on the west, particularly the U.S.  sensitivity towards colonialism  governments.
International Development Economics Associates (IDEAs) I NTERNATIONAL C ONFERENCE ON F INANCIAL I NSTABILITY AND I NEQUALITY IN AN E CONOMICALLY I NTEGRATED.
Where is the U.S. Economy Going? Barry Bluestone Northeastern University Laborers’ International Union Hilton Hotel Anchorage, Alaska July 10, 2005.
Possible causes of decreasing wage ratio. How to overcome the phenomenon? László György, PhD Assistant Professor Budapest University of Technology and.
National Income & Business Cycles 0 Ohio Wesleyan University Goran Skosples 5: Unemployment.
June 2016 Government of India Employment Generation & Promotion of Exports in Textile & Apparel Sector 1.
IN THIS CHAPTER, YOU WILL LEARN:

Latin American Growth: Toward A New Equilibrium
SOUTH AMERICA.
Mexico, NAFTA, and Expansion Toward the European Union
Chapter 9: Labor Section 1
NS4540 Winter Term 2017 Latin America: Income Distribution
Trade Barriers.
54a. Employer spending on workers’ compensation, selected industries, 2015 (Private wage-and-salary workers)
Presentation by Mustapha Nabli, Chief Economist, MENA Region
Ch. 9: Labor.
NAFTA - TAA Certifications for All Industries by Type of Impact
Civilian noninstitutional population
Facts and General Statistics from 2010 Regarding Minimum Wage Workers
STUDENT NOTES – 4 CH. 5 MEXICO
Chapter 9: Labor Section 1
NS4540 Winter Term 2019 Latin America: Informality
Chapter 9: Labor Section 1
Unemployment Bzhar N. Majeed.
NS4540 Winter Term 2018 Labor Markets
Manufacturing in the UK
NS4540 Winter Term 2019 Latin America: Income Distribution
“ I ” See Starts with “S” “W” OW You “C” All Mixed Up 1pt 1 pt 1 pt
June 2002 NATIONAL ECONOMY Part 1
Presentation transcript:

Informality and Globalization W.F. Maloney Office of the Chief Economist Latin America and Caribbean World Bank LACML/OAS May 2004 Washington, DC

Sources: From Natural Resources to the Knowledge Economy: Trade and Job Quality Informality Revisted (World Development forthcoming) www.worldbank.org/laceconomist

What does a high rate of informality mean? Self-Employment vs Level of Development % Self Employed in Work Force Log. Industrial Value Added/Worker

Rise in informality in early 1990s- booms and welfare improvement? Mexico Self Employed  Formal Formal  Self Employed 66% voluntary Unemployment Bosch y Maloney 2004

Mex: rise in informality not acccompanied by segemenatation No Secular Trend Income Formal/SE NT Boom #Form/#SE Fiess, Fugazza, Maloney 2001

Colombia: increase in massive segmentation Income Formal/SE #Form/#SE

Colombia vs. Mexico: Nominal rigidities have compounded the impact of the crisis Distribution of informal and formal salaries Careful with minimum wages!

Argentina: Movement Toward Informality Predates Trade Reform Informality Rate for Salaried Workers in Greater Buenos Aires, 1980-1990 - 15% 20% 25% 30% 35% 40% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Trade Liberalization Gasparini 2000

Formality Is Higher in Tradeable Industries Rate of Formality By Tercile of Exports-imports/worker High Imports High Exports Montes and Maloney 2001

Informality as part of global manufacturing chain Informality as part of global manufacturing chain? Didn’t increase with NAFTA Share of micros with large business clients Sector 1994 1996 1998 Manufacturing 30 16 22 Services 12 11 10 Commerce 9 large clients: 30% earnings premium large suppliers: 11% premium Problem: isolation of informal sector. Sanchez, Joo and Zappala 2001