Designing Labor Market Institutions in Emerging and Developing Economies: Evidence and Policy Options
Staff Discussion Notes, May 21, 2019
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- Designing Labor Market Institutions in Emerging and Developing Economies: Evidence and Policy Options
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Bibliographic details
- Authors: Romain A Duval, Prakash Loungani
- Published: May 21, 2019
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9781498313261.006
Overview
- Paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies.
- Reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies.
- Focuses mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency:
- employment protection
- unemployment insurance and social assistance
- minimum wages and collective bargaining
Methods
- Uses text mining techniques to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016.
- Benchmarks the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.
Major findings and contributions
- Provides a critical review of the literature on the design of labor market institutions in emerging and developing market economies.
- Benchmarks IMF Article IV advice for 30 emerging market and frontier economies against the literature’s tentative conclusions.
- Emphasizes the dual objectives that institutions must address: workers’ protection and labor market efficiency.
Policy-relevant themes highlighted
- Trade-offs and design considerations across three institutional areas:
- Employment protection (design and implications for firms and workers)
- Unemployment insurance and social assistance (risk pooling and social protection design)
- Minimum wages and collective bargaining (wage-setting and labor market outcomes)
- Relevance of firm-level and economy-wide considerations when formulating advice and reforms.
Publication and authorship (from the source)
- By Romain A Duval, Prakash Loungani
- May 21, 2019
- Text mining applied to Article IV Reports for 30 emerging and frontier economies over 2005–2016
- Pages: 58
Source: IMF Staff Discussion Note "Designing Labor Market Institutions in Emerging and Developing Economies: Evidence and Policy Options" by Romain A Duval and Prakash Loungani (May 21, 2019).
Content in this bundle
- Staff Discussion Note