Digital technologies affect employment through complex channels: automation, connectivity, and innovation. Labor-saving technologies coupled with reshoring may disrupt labor markets in developing countries and result in job losses.
... See More + Yet, technological change drives productivity gains in both white-collar and blue-collar jobs either through ICT uptake or modern mechanical technologies. The ‘gig economy’ changes the traditional employer-employee relationship as it introduces new types of work. Digital platforms increase flexibility and labor market transparency, but delink workers from employers and from social benefits and protections making them more vulnerable. Policymakers in rich and poor countries alike should rethink social protection mechanisms. Technology diffusion has created divided worlds varying by region and income level. Job automation is likely to have a greater impact on less skilled workers than those with a university education (40 percent versus 5 percent in OECD countries). Moving towards a digital economy will reward those with access to broadband connectivity, strong institutions, and digital literacy. Future workers must acquire basic IT skills together with socio emotional skills that adapt to a lifelong learning environment in a changing jobs landscape. Technology can also increase labor market access for women and persons with disabilities, given the right ‘analog’ complements are in place. Technological change will affect the number, quality, and distribution of jobs across the world. In developing countries, the future workforce should be ready to embrace technology, digital literacy, and connectedness—bringing everyone closer to the technological frontier.
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Theory suggests that the effect of banking market concentration on financial stability is mediated by several competing variables. Using a sample of 68 countries from 1997 to 2015, this paper proposes a unified empirical framework to test for the simultaneous presence and impact of the mediators through which concentration is expected to impact financial stability.
... See More + The results indicate that the magnitude and net effect of the mediators depend upon the level of concentration. At lower levels of concentration, increasing concentration improves banking system stability via profitability. At higher levels of concentration, increasing concentration makes the banking system more fragile because of the cost of credit, diversification and the ease of monitoring. For intermediate levels, concentration has no significant effect on financial stability, as the competing moderators cancel each other out. The results suggest that an intermediate level of concentration may be optimal for welfare.
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Policy Research Working Paper WPS8615 OCT 16, 2018
Financial Cooperatives (FCs) are important providers of financial services to poor and middle-income people, and significant drivers of financial inclusion.
... See More + Aside from their strong presence and relevance in developed economies, especially Europe and North America, the significance of financial cooperatives in terms of financial inclusion in the developing world cannot be underestimated. Their pervasive presence in rural areas, and their potential to expand financial inclusion with multiple services to under-served segments make enabling the sustainable functioning of FCs a sensible policy objective. This paper reviews current knowledge about, and recent examples of FC development practice that generate lessons deemed valuable and useable in diverse contexts. The review provides background for an informed discussion around the following propositions: 1) Legal and regulatory frameworks for FCs adapted to the organizational nature and institutional structure of local FC entities; 2) Adequate legal and regulatory frameworks including appropriate safety nets following the development of the local FC market segment; and 3) Integrated approaches that combine legal and regulatory reforms with support to the institutional strengthening of the FC sector.
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This paper studies the impact of transport infrastructure projects of the Belt and Road Initiative on shipment times and trade costs. Based on a new data on completed and planned Belt and Road transport projects, Geographic Information System analysis is used to estimate shipment times before and after the Belt and Road Initiative.
... See More + Two sets of data are computed to address different research questions: a global database based on an analysis of 1,000 cities in 191 countries and 47 sectors and a regional database that focuses on more granular information (1,818 cities) for Belt and Road economies only. The paper uses sectoral estimates of “value of time” to transform changes in shipment times into changes in ad valorem trade costs at the country-sector level. The findings show that the Belt and Road Initiative will significantly reduce shipment times and trade costs. For the world, the average reduction in shipment time will range between 1.2 and 2.5 percent, leading to reduction of aggregate trade costs between 1.1 and 2.2 percent. For Belt and Road economies, the change in shipment times and trade costs will range between 1.7 and 3.2 percent and 1.5 and 2.8 percent, respectively. Belt and Road economies located along the corridors where projects are built experience the largest gains. Shipment times along these corridors decline by up to 11.9 percent and trade costs by up to 10.2 percent. The paper also shows that these effects are magnified by policy reforms that reduce border delays and improve corridor management.
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Policy Research Working Paper WPS8614 OCT 15, 2018
De Soyres,Francois Michel Marie Raphael; Mulabdic,Alen; Murray,Siobhan; Rocha Gaffurri,Nadia Patrizia; Ruta,MicheleDisclosed
