Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries
This paper reviews evidence from 44 middle-income countries on how the recent financial crisis affected jobs and workers' incomes. In addition to providing a rare assessment of the magnitude of the impact across several middle-income countries...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110908084150 http://hdl.handle.net/10986/3555 |
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okr-10986-3555 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAM ACTIVE LABOR MARKET PROGRAMS ACTIVE LABOR PROGRAMS ACTIVE LABOUR ACTIVE LABOUR MARKET ACTIVE LABOUR MARKET POLICIES ADJUSTMENT PROCESS AGGREGATE EMPLOYMENT AVERAGE WAGE BUSINESS CYCLE COLLECTIVE BARGAINING DEBT DIRECT JOB CREATION DISPLACED WORKERS EARNING EARNINGS GROWTH EARNINGS INDICATORS EARNINGS LOSS EARNINGS REGRESSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYERS EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT REDUCTION EMPLOYMENT TRENDS ENTRY BARRIERS FACTORING FINANCIAL CRISES FINANCIAL SERVICES FIRING FIRING COST FIRING COSTS FIRM SURVEY GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME SUPPORT INCOME SUPPORT PROGRAMS INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL LABOUR ORGANIZATION JOB CREATION JOB LOSS JOB LOSSES JOB MATCH JOB TRAINING JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET IMPACT LABOR MARKET INDICATORS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR REGULATION LABOR SHARE LABOR SUPPLY LABOUR MARKETS LAID-OFF WORKERS MARKET ECONOMIES MIGRATION NOMINAL WAGES PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PENALTIES PRECISE ROLE PRICE INCREASES PRICE SUPPORTS PRIVATE SECTOR PRODUCTIVITY PUBLIC WORKS PUBLIC WORKS PROGRAM PUBLIC WORKS PROGRAMS REAL WAGE REAL WAGES REDUNDANCY RETAIL RETAIL TRADE SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL MANUFACTURING SOCIAL CAPITAL SPREAD TEMPORARY WAGE SUBSIDIES TOTAL EMPLOYMENT TRAINING PROGRAM TRANSPORT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT STATISTICS URBAN WORKERS VOLATILITY WAGE BILL WAGE GROWTH WAGE RATES WAGE SUBSIDIES WAGE SUBSIDY WAGE SUBSIDY PROGRAMS WORKER WORKERS WORKING POOR |
| spellingShingle |
ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAM ACTIVE LABOR MARKET PROGRAMS ACTIVE LABOR PROGRAMS ACTIVE LABOUR ACTIVE LABOUR MARKET ACTIVE LABOUR MARKET POLICIES ADJUSTMENT PROCESS AGGREGATE EMPLOYMENT AVERAGE WAGE BUSINESS CYCLE COLLECTIVE BARGAINING DEBT DIRECT JOB CREATION DISPLACED WORKERS EARNING EARNINGS GROWTH EARNINGS INDICATORS EARNINGS LOSS EARNINGS REGRESSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYERS EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT REDUCTION EMPLOYMENT TRENDS ENTRY BARRIERS FACTORING FINANCIAL CRISES FINANCIAL SERVICES FIRING FIRING COST FIRING COSTS FIRM SURVEY GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME SUPPORT INCOME SUPPORT PROGRAMS INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL LABOUR ORGANIZATION JOB CREATION JOB LOSS JOB LOSSES JOB MATCH JOB TRAINING JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET IMPACT LABOR MARKET INDICATORS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR REGULATION LABOR SHARE LABOR SUPPLY LABOUR MARKETS LAID-OFF WORKERS MARKET ECONOMIES MIGRATION NOMINAL WAGES PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PENALTIES PRECISE ROLE PRICE INCREASES PRICE SUPPORTS PRIVATE SECTOR PRODUCTIVITY PUBLIC WORKS PUBLIC WORKS PROGRAM PUBLIC WORKS PROGRAMS REAL WAGE REAL WAGES REDUNDANCY RETAIL RETAIL TRADE SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL MANUFACTURING SOCIAL CAPITAL SPREAD TEMPORARY WAGE SUBSIDIES TOTAL EMPLOYMENT TRAINING PROGRAM TRANSPORT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT STATISTICS URBAN WORKERS VOLATILITY WAGE BILL WAGE GROWTH WAGE RATES WAGE SUBSIDIES WAGE SUBSIDY WAGE SUBSIDY PROGRAMS WORKER WORKERS WORKING POOR Khanna, Gaurav Newhouse, David Paci, Pierella Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5791 |
| description |
This paper reviews evidence from 44
middle-income countries on how the recent financial crisis
affected jobs and workers' incomes. In addition to
providing a rare assessment of the magnitude of the impact
across several middle-income countries, the paper describes
how labor markets adjusted and how the adjustments varied
for different types of countries. The main finding is that
the crisis affected the quality of employment more than the
number of jobs. Overall, the slow-down in earning growth was
considerably higher than that in employment, and the decline
in gross domestic product was associated with a sharp
decline in output per worker, particularly in the industrial
sector. In several counties, hours per worker declined and
hourly wages changed little. But both the magnitude and
nature of the adjustments varied considerably across
countries. For a given drop in gross domestic product,
earnings declined more in countries with larger
manufacturing sectors, smaller export sectors, and more
stringent labor market regulations. In addition, overall
employment became more sensitive to growth in gross domestic
product. These findings have implications that go beyond the
recent financial crisis as they highlight (i) the
limitations of focusing policy responses on maintaining jobs
and providing alterative employment or replacement income
for the unemployed, and (ii) the critical role of fast-track
data systems that are capable of monitoring ongoing labor
market adjustment during economic downturns, in supporting
the design of effective policy responses. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Khanna, Gaurav Newhouse, David Paci, Pierella |
| author_facet |
Khanna, Gaurav Newhouse, David Paci, Pierella |
| author_sort |
Khanna, Gaurav |
| title |
Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| title_short |
Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| title_full |
Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| title_fullStr |
Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| title_full_unstemmed |
Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries |
| title_sort |
fewer jobs or smaller paychecks? aggregate crisis impacts in selected middle-income countries |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110908084150 http://hdl.handle.net/10986/3555 |
| _version_ |
1764387196452732928 |
| spelling |
okr-10986-35552021-04-23T14:02:10Z Fewer Jobs or Smaller Paychecks? Aggregate Crisis Impacts in Selected Middle-Income Countries Khanna, Gaurav Newhouse, David Paci, Pierella ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAM ACTIVE LABOR MARKET PROGRAMS ACTIVE LABOR PROGRAMS ACTIVE LABOUR ACTIVE LABOUR MARKET ACTIVE LABOUR MARKET POLICIES ADJUSTMENT PROCESS AGGREGATE EMPLOYMENT AVERAGE WAGE BUSINESS CYCLE COLLECTIVE BARGAINING DEBT DIRECT JOB CREATION DISPLACED WORKERS EARNING EARNINGS GROWTH EARNINGS INDICATORS EARNINGS LOSS EARNINGS REGRESSIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYERS EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT REDUCTION EMPLOYMENT TRENDS ENTRY BARRIERS FACTORING FINANCIAL CRISES FINANCIAL SERVICES FIRING FIRING COST FIRING COSTS FIRM SURVEY GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME SUPPORT INCOME SUPPORT PROGRAMS INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL LABOUR ORGANIZATION JOB CREATION JOB LOSS JOB LOSSES JOB MATCH JOB TRAINING JOBS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET IMPACT LABOR MARKET INDICATORS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR REGULATION LABOR SHARE LABOR SUPPLY LABOUR MARKETS LAID-OFF WORKERS MARKET ECONOMIES MIGRATION NOMINAL WAGES PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PENALTIES PRECISE ROLE PRICE INCREASES PRICE SUPPORTS PRIVATE SECTOR PRODUCTIVITY PUBLIC WORKS PUBLIC WORKS PROGRAM PUBLIC WORKS PROGRAMS REAL WAGE REAL WAGES REDUNDANCY RETAIL RETAIL TRADE SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL MANUFACTURING SOCIAL CAPITAL SPREAD TEMPORARY WAGE SUBSIDIES TOTAL EMPLOYMENT TRAINING PROGRAM TRANSPORT UNDEREMPLOYMENT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT STATISTICS URBAN WORKERS VOLATILITY WAGE BILL WAGE GROWTH WAGE RATES WAGE SUBSIDIES WAGE SUBSIDY WAGE SUBSIDY PROGRAMS WORKER WORKERS WORKING POOR This paper reviews evidence from 44 middle-income countries on how the recent financial crisis affected jobs and workers' incomes. In addition to providing a rare assessment of the magnitude of the impact across several middle-income countries, the paper describes how labor markets adjusted and how the adjustments varied for different types of countries. The main finding is that the crisis affected the quality of employment more than the number of jobs. Overall, the slow-down in earning growth was considerably higher than that in employment, and the decline in gross domestic product was associated with a sharp decline in output per worker, particularly in the industrial sector. In several counties, hours per worker declined and hourly wages changed little. But both the magnitude and nature of the adjustments varied considerably across countries. For a given drop in gross domestic product, earnings declined more in countries with larger manufacturing sectors, smaller export sectors, and more stringent labor market regulations. In addition, overall employment became more sensitive to growth in gross domestic product. These findings have implications that go beyond the recent financial crisis as they highlight (i) the limitations of focusing policy responses on maintaining jobs and providing alterative employment or replacement income for the unemployed, and (ii) the critical role of fast-track data systems that are capable of monitoring ongoing labor market adjustment during economic downturns, in supporting the design of effective policy responses. 2012-03-19T18:04:33Z 2012-03-19T18:04:33Z 2011-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110908084150 http://hdl.handle.net/10986/3555 English Policy Research working paper ; no. WPS 5791 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |