Minimizing Negative Distributional Effects of Public Sector Downsizing
Downsizing programs are an important part of many public sector reforms supported by the World Bank. Although these programs can reduce budget deficits and address inefficiencies caused by state-led development strategies, many observers are concer...
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2004/04/5177543/minimizing-negative-distributional-effects-public-sector-downsizing http://hdl.handle.net/10986/11274 |
| Summary: | Downsizing programs are an important
part of many public sector reforms supported by the World
Bank. Although these programs can reduce budget deficits and
address inefficiencies caused by state-led development
strategies, many observers are concerned about the political
and social consequences of mass layoffs as well as the
disproportionate share of the losses that some groups of
workers may bear. This note examines the differing possible
impacts of downsizing on male and female employees and the
consequences for households and the economy at large. After
discussing why the distributional consequences of downsizing
are important, the note introduces a simple tool that can be
used in the design of downsizing programs to minimize
negative distributional consequences. Although this note
focuses on the differing effects of downsizing on men and
women, similar concerns apply to other categories of workers
(such as different ethnic groups). This tool can easily be
adapted to minimize the negative distributional consequences
for other groups as well. |
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