Coping with Crises : Why and How to Protect Employment and Earnings

Events of the past two years are a reminder that crises are a recurring phenomenon with deep and often protracted impacts on labor markets. This paper examines the challenges inherent in crafting policy responses, with particular attention to devel...

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Main Authors:	Paci, Pierella, Revenga, Ana, Rijkers, Bob
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	COMPREHENSIVE APPROACH DETERIORATING FISCAL SPACE LABOR MARKETS LIMITED INSTITUTIONAL CAPACITY POLICY RESPONSES TO CRISES POLITICAL PRESSURES REACTIVE APPROACH
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_20091026093000 http://hdl.handle.net/10986/4286

id	okr-10986-4286
recordtype	oai_dc
spelling	okr-10986-42862021-04-23T14:02:16Z Coping with Crises : Why and How to Protect Employment and Earnings Paci, Pierella Revenga, Ana Rijkers, Bob COMPREHENSIVE APPROACH DETERIORATING FISCAL SPACE LABOR MARKETS LIMITED INSTITUTIONAL CAPACITY POLICY RESPONSES TO CRISES POLITICAL PRESSURES REACTIVE APPROACH Events of the past two years are a reminder that crises are a recurring phenomenon with deep and often protracted impacts on labor markets. This paper examines the challenges inherent in crafting policy responses, with particular attention to developing countries. It focuses on the potential tradeoffs between offsetting adverse short-term impacts and preserving incentives for economic recovery and future growth, and between protecting the most vulnerable and compensating those most immediately impacted. It also highlights how policymakers room for maneuver is constrained in crisis times by deteriorating fiscal space, limited institutional capacity, and mounting political pressures. Based on empirical evidence from previous crises, the paper asserts that taking a myopic and reactive approach may be costly and counterproductive. Instead, it advocates a more comprehensive approach, designed to build institutions - such as automatic stabilizers and safety nets - that can deliver a coordinated and coherent policy package. This approach will make crises catalysts for institutional changes and long-run growth. 2012-03-19T19:13:16Z 2012-03-19T19:13:16Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091026093000 http://hdl.handle.net/10986/4286 English Policy Research working paper ; no. WPS 5094 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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	COMPREHENSIVE APPROACH DETERIORATING FISCAL SPACE LABOR MARKETS LIMITED INSTITUTIONAL CAPACITY POLICY RESPONSES TO CRISES POLITICAL PRESSURES REACTIVE APPROACH
spellingShingle	COMPREHENSIVE APPROACH DETERIORATING FISCAL SPACE LABOR MARKETS LIMITED INSTITUTIONAL CAPACITY POLICY RESPONSES TO CRISES POLITICAL PRESSURES REACTIVE APPROACH Paci, Pierella Revenga, Ana Rijkers, Bob Coping with Crises : Why and How to Protect Employment and Earnings
geographic_facet	The World Region The World Region
relation	Policy Research working paper ; no. WPS 5094
description	Events of the past two years are a reminder that crises are a recurring phenomenon with deep and often protracted impacts on labor markets. This paper examines the challenges inherent in crafting policy responses, with particular attention to developing countries. It focuses on the potential tradeoffs between offsetting adverse short-term impacts and preserving incentives for economic recovery and future growth, and between protecting the most vulnerable and compensating those most immediately impacted. It also highlights how policymakers room for maneuver is constrained in crisis times by deteriorating fiscal space, limited institutional capacity, and mounting political pressures. Based on empirical evidence from previous crises, the paper asserts that taking a myopic and reactive approach may be costly and counterproductive. Instead, it advocates a more comprehensive approach, designed to build institutions - such as automatic stabilizers and safety nets - that can deliver a coordinated and coherent policy package. This approach will make crises catalysts for institutional changes and long-run growth.
format	Publications & Research :: Policy Research Working Paper
author	Paci, Pierella Revenga, Ana Rijkers, Bob
author_facet	Paci, Pierella Revenga, Ana Rijkers, Bob
author_sort	Paci, Pierella
title	Coping with Crises : Why and How to Protect Employment and Earnings
title_short	Coping with Crises : Why and How to Protect Employment and Earnings
title_full	Coping with Crises : Why and How to Protect Employment and Earnings
title_fullStr	Coping with Crises : Why and How to Protect Employment and Earnings
title_full_unstemmed	Coping with Crises : Why and How to Protect Employment and Earnings
title_sort	coping with crises : why and how to protect employment and earnings
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_20091026093000 http://hdl.handle.net/10986/4286
_version_	1764390761562898432

Coping with Crises : Why and How to Protect Employment and Earnings

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