Does Employment Generation Really Matter for Poverty Reduction?

This paper analyzes how the employment/productivity profile of growth and its sectoral pattern are correlated with poverty reduction. The authors use a sample of 104 short-run growth spells in developing countries, between 1980 and 2001. They also...

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Bibliographic Details
Main Authors:	Gutierrez, Catalina, Orecchia, Carlo, Paci, Pierella, Serneels, Pieter
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE TERMS ABSOLUTE VALUE AGGREGATE EMPLOYMENT AGGREGATE GROWTH AGGREGATE LEVEL AGGREGATE PRODUCTIVITY AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL TRADE ANNUAL LEAVE AVERAGE GROWTH AVERAGE LEVEL BUSINESS CYCLE COLLECTIVE AGREEMENTS COMPETITIVE MARKET COMPETITIVE MODEL COUNTRY CASE COUNTRY SPECIFIC COVERAGE OF POPULATION CRISES DEMOGRAPHIC CHANGES DEPENDENCY RATIO DEPENDENT VARIABLE DETERMINANTS OF GROWTH DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT EFFECTIVENESS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT REPORT DISCRIMINATION DISTRIBUTIONAL CHANGES EARNING ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMICS EFFECTIVE POLICIES EFFICIENCY WAGES EMPIRICAL EVIDENCE EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT IN AGRICULTURE EMPLOYMENT OPPORTUNITIES EMPLOYMENT PATTERN EMPLOYMENT TRENDS ESTIMATION RESULTS ETHNIC GROUP EXCHANGE RATE EXPLANATORY VARIABLES EXPORT TAXES FARM PRODUCTIVITY FEWER PEOPLE FIRING COSTS FIRING RESTRICTIONS FIRM PERFORMANCE FOREIGN DIRECT INVESTMENT FULL EMPLOYMENT GENERAL EQUILIBRIUM GINI COEFFICIENT GROWTH ELASTICITY GROWTH EPISODE GROWTH LITERATURE GROWTH PATTERN GROWTH PERFORMANCE GROWTH POLICIES GROWTH PRO-POOR GROWTH PROCESS HEADCOUNT POVERTY HEADCOUNT RATIO HIGH GROWTH HOUSEHOLD DATA HOUSEHOLD SURVEYS IMPACT ON POVERTY INCOME CHANGE INCOME DISTRIBUTION INDEPENDENT VARIABLES INDUSTRIALIZATION INDUSTRY WAGE INEQUALITY INFORMAL SECTOR INVESTMENT CLIMATE JOBLESS GROWTH JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR FORCE GROWTH LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET CONDITIONS LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET REGULATION LABOR MARKET REGULATIONS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR POLICIES LABOR PRODUCTIVITIES LABOR PRODUCTIVITY LABOR REGULATION LABOR-INTENSIVE GROWTH LABOUR LABOUR MARKET LABOUR OFFICE LEVEL OF EDUCATION LEVELS OF EDUCATION LONG RUN LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MANUFACTURING WAGE MARGINAL EFFECT MATERNITY LEAVE MEAN INCOME MIGRATION MINIMUM WAGE MINIMUM WAGES MOVEMENTS OF PEOPLE NATIONAL ACCOUNTS NEGATIVE EFFECT NUMBER OF WORKERS OUTPUT GROWTH OVERVALUED EXCHANGE PER CAPITA INCOME POLICY DISCUSSION POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR GOVERNANCE POPULATION % CHANGE POPULATION DIVISION POPULATION GROWTH POVERTY ALLEVIATION POVERTY CHANGES POVERTY DATA POVERTY DATABASE POVERTY IMPACT POVERTY IMPACT OF GROWTH POVERTY INCREASES POVERTY MEASURE POVERTY OUTCOMES POVERTY REDUCING POVERTY REDUCTION PRELIMINARY EVIDENCE PREVIOUS SECTION PREVIOUS STUDIES PRICE CONTROLS PRICE STABILITY PRO POOR PRO POOR GROWTH PRO-POOR PRO-POOR GROWTH PRODUCT MARKETS PRODUCT PRICES PRODUCTIVITY GROWTH PROGRESS PROPERTY RIGHTS PUBLIC SECTOR REDUCED POVERTY REDUCING POVERTY RESPECT RURAL RURAL AREAS RURAL EMPLOYMENT RURAL POVERTY RURAL SECTOR SAFETY SAFETY NET SALARIED EMPLOYMENT SECONDARY EDUCATION SERVICE SECTOR SEVERANCE PAY SHORT-RUN GROWTH SIGNIFICANT CORRELATION SOCIAL SECURITY STATE-OWNED ENTERPRISES SUB-SAHARAN AFRICA TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE POLICY TRADE VOLUMES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNION MEMBERSHIP UNIONS URBAN AREAS URBAN EMPLOYMENT URBAN GROWTH URBAN POVERTY WAGE DIFFERENTIALS WAGES WORKER WORKER PRODUCTIVITY WORKERS WORKING POOR WORKING POPULATION
Online Access:	http://documents.worldbank.org/curated/en/2007/12/8842618/employment-generation-really-matter-poverty-reduction http://hdl.handle.net/10986/7593

Description
Summary:	This paper analyzes how the employment/productivity profile of growth and its sectoral pattern are correlated with poverty reduction. The authors use a sample of 104 short-run growth spells in developing countries, between 1980 and 2001. They also identify some conditions of the labor market and the economic environment that are associated with employment-intensive growth or specific sectoral growth. The results show that, in the short run, although the aggregate employment-rate intensity of growth does not matter for poverty reduction any more than the aggregate productivity intensity of growth, the sectoral pattern of employment growth and productivity growth is important. Employment-intensive growth in the secondary sector is associated with decreases in poverty, while employment-intensive growth in agriculture is correlated with poverty increases. Similarly, productivity-intensive growth in agriculture is associated with decreases in poverty. Although the study does not address causality, coincidence of these phenomena in this large sample of heterogeneous countries and periods suggests that, in the short run, the sectoral productivity and employment pattern of growth may have important implications for poverty alleviation. Therefore, policies for reducing poverty should not overlook the sectoral productivity and employment implications of different growth policies.

Does Employment Generation Really Matter for Poverty Reduction?

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