Turkey’s pace of income convergence has globally been one of the most remarkable of the past fifteen years. Sustaining growth and improvements in living standards in Turkey will require higher productivity in the economy.
... See More + The Turkey Productivity Report (2019) provides an in-depth analysis of firm productivity in Turkey and how this adds up to economic growth in the country. The report has six parts. The first two provide macro and micro diagnosis of productivity in the economy – what are the productivity trends, how have these affected economic growth, what firms in what industry are the most productive, and are they absorbing an increasing or decreasing share of resources? From here the report analyzes specific policy areas that might explain firm productivity dynamics in Turkey – namely firms’ integration in the global economy, access to innovation support, the quality of human capital, and the business environment including competition. The report finds that economic integration and innovation have boosted firm-level productivity, though reforms could further accelerate these positive impacts. Productivity gains could accelerate the demand for more educated and skilled workers. The growth of more productive firms could in turn also be accelerated through reforms that increase competition and reduce regulatory burden.
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This paper explores the effects of a large minimum wage hike on firm exits from the formal economy, and its associated impacts on employment and informality.
... See More + It uses an exceptionally rich linked employer-employee dataset on the universe of formal firms and workers in a developing economy. Data on the full wage distribution in firms allows to precisely measure minimum wage exposure, and to estimate the causal effect of the hike in a difference-in-difference setting. The hike is found to significantly increase the destruction rate of formal firms. Effects are concentrated among small and low-productivity firms while exits of high-productivity firms are unaffected. The increase in firm exits is larger in industries with small profit margins, higher labor shares and stronger market competition. We also evidence negative effects on formal employment, which mainly originate from firm destruction rather than employment cuts in surviving firms. Corroborative evidence indicates that workers from exiting firms mostly transition into informal employment, instead of being jobless after the hike.
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Policy Research Working Paper WPS8749 FEB 15, 2019
European countries have the world's most redistributive tax and transfer systems. Although they have been well equipped to deal with vertical inequality -- that is, fostering redistribution from the rich to the poor -- less is known about their performance in dealing with horizontal inequality, that is, in redistributing among socioeconomic groups.
... See More + In a context where individuals may not only care about vertical redistribution, but also about the economic situation of the specific groups to which they belong, the horizontal dimension of redistribution becomes politically salient and can be a source of social tensions. This paper analyzes the performance of the 28 EU countries on redistribution across (i) age groups, (ii) occupational groups, and (iii) household types over 2007–2014 using counterfactual simulation techniques. The analysis finds a great degree of heterogeneity across countries: changes in the tax and transfer system have particularly hit the young and losers of occupational change in Eastern European countries, while households with greater economic security have benefited from these changes. The findings suggest that horizontal inequality is a dimension that policy makers should take into account when reforming tax and transfer systems.
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Policy Research Working Paper WPS8657 NOV 29, 2018
Georgia’s reforms over the last two decades have paved the way for the country’s economic transformation by the creation of better jobs and substantial poverty reduction.
... See More + Despite these positive developments, some important structural challenges persist in relation to jobs. Growth has not created sufficient jobs in Georgia, especially not enough inclusive and high-productivity jobs. This report analyses the main economic forces driving job creation in Georgia, and attempts to answer four questions. First, Chapter 1 investigates whether the enabling environment is conducive to good job outcomes? Second, Chapter 2 investigates how formal sector job creators doing? Third, Chapter 3 investigates how does the Georgian workforce measure up to the needs of employers? Finally, Chapter 4 recommends a set of policy options that can improve jobs outcomes.
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Georgia’s reforms over the last two decades have paved the way for the country’s economic transformation by the creation of better jobs and substantial poverty reduction.
... See More + Despite these positive developments, some important structural challenges persist in relation to jobs. Growth has not created sufficient jobs in Georgia, especially not enough inclusive and high-productivity jobs. This report analyses the main economic forces driving job creation in Georgia, and attempts to answer four questions. First, Chapter 1 investigates whether the enabling environment is conducive to good job outcomes? Second, Chapter 2 investigates how formal sector job creators doing? Third, Chapter 3 investigates how does the Georgian workforce measure up to the needs of employers? Finally, Chapter 4 recommends a set of policy options that can improve jobs outcomes.
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Midway through 2015, Indonesia remains confronted with an uncertain external environment, and domestic economic policy challenges have intensified.
... See More + GDP decelerated to below 5 percent in the first quarter and private consumption expenditure, Indonesia’s engine of growth in recent years, is also slowing. Weaker growth has resulted in slower job creation, with recent employment rising only just enough to absorb the increase in working age population. While the commodity downturn since 2012 and policy response have affected output growth the most in resource-rich provinces, employment creation has come under pressure across Indonesia. Yet the scope for policy stimulus is limited and monetary policy in particular is constrained due to sticky inflation and persistent external vulnerabilities.
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Midway through 2015, Indonesia remains confronted with an uncertain external environment, and domestic economic policy challenges have intensified.
... See More + GDP decelerated to below 5 percent in the first quarter and private consumption expenditure, Indonesia’s engine of growth in recent years, is also slowing. Weaker growth has resulted in slower job creation, with recent employment rising only just enough to absorb the increase in working age population. While the commodity downturn since 2012 and policy response have affected output growth the most in resource-rich provinces, employment creation has come under pressure across Indonesia. Yet the scope for policy stimulus is limited and monetary policy in particular is constrained due to sticky inflation and persistent external vulnerabilities.
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The Indonesia Economic Quarterly (IEQ) has two main aims. First, it reports on the key developments over the past three months in Indonesias economy, and places these in a longerterm and global context.
... See More + Based on these developments, and on policy changes over the period, the IEQ regularly updates the outlook for Indonesias economy and social welfare. Second, the IEQ provides a more in-depth examination of selected economic and policy issues, and analysis of Indonesias medium-term development challenges. It is intended for a wide audience, including policymakers, business leaders, financial market participants, and the community of analysts and professionals engaged in Indonesias evolving economy.
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The Indonesia Economic Quarterly (IEQ) has two main aims. First, it reports on the key developments over the past three months in Indonesias economy, and places these in a longerterm and global context.
... See More + Based on these developments, and on policy changes over the period, the IEQ regularly updates the outlook for Indonesias economy and social welfare. Second, the IEQ provides a more in-depth examination of selected economic and policy issues, and analysis of Indonesias medium-term development challenges. It is intended for a wide audience, including policymakers, business leaders, financial market participants, and the community of analysts and professionals engaged in Indonesias evolving economy.
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