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Protecting All : Risk Sharing for a Diverse and Diversifying World of Work (English)

Forces disrupting markets and changing the nature of work present a fundamental challenge to prevailing employment-based risk-sharing policies in countries at all levels of development. These forces are diversifying the ways people earn their livelihoods. Work in low- and middle-income countries has always been diverse, fluid, and overwhelmingly informal: unobservable and beyond the reach of the state's ability to enforce the obligations and benefits of a country's social contract. In contrast to this diversity and fluidity, prevailing employment-based risk-sharing policies assume a level of homogeneity and stability in the ways people work that reflects the reality of only a minority of workers in these countries. More recently, the assumed homogeneity and stability of work has changed even in the high-income countries where these policies were conceived of and developed. Both these situations raise concerns that current risk-sharing policies are losing relevance for working people. The changing nature of work challenges the assumptions underpinning the policy tools for managing risk and uncertainty, which have for the most part remained built around the assumption that most people are in a stable, "standard" employment relationship. This volume proposes a package of protections, labor benefits, and services that are more relevant to the diverse and diversifying world of work. Here are five key messages for policy makers. The foundation of risk-sharing Policy is poverty prevention and subsidized protection from catastrophic losses, financed from broad-based taxes. With robust protections in place, available to all people wherever and however they work, governments' mandates can be less distortive. Rather than protect workers from change, governments can shift their efforts to protecting them for change by supporting transitions and reemployment. Given daunting resource and capacity limitations in most countries, a progressive universalization of risk-sharing coverage will be more fiscally viable and sustainable. Digital technology can be harnessed to mobilize tax resources for this extended coverage and to deliver protection more effectively, efficiently, and equitably.


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    Packard,Truman G., Gentilini,Ugo, Grosh,Margaret Ellen, O'Keefe,Philip B., Palacios,Robert J., Robalino,David A., Santos,Indhira Vanessa

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    The World Region,

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    Protecting All : Risk Sharing for a Diverse and Diversifying World of Work

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    social insurance; changing nature of work; Social Protection; Food Security and Nutrition; risk-sharing mechanism; Human Development Practice; small and medium enterprise; Internal rate of return; Pensions and Social Insurance; cost of long-term care; earned income tax credit; negative income tax; Labor Market; impact on poverty; guaranteed minimum income; social health insurance; social insurance system; labor market outcome; labor market policy; social insurance plans; resources and capacity; social assistance; living standard measurement; value added tax; categories of employment; equality of opportunity; safety net program; social assistance program; flexible work arrangement; rate of growth; social protection system; emerging market economy; finance and markets; participation in employment; labor market institution; household labor supply; error exclusion; social protection program; cash transfer program; health coverage program; changes in inequality; aging population; private sector worker; consumption-smooth; share of work; long-term care insurance; labor market regulation; contributory pension schemes; Sexually Transmitted Infection; income tax system; social insurance scheme; labor market issue; social insurance coverage; social protection policy; risk of exclusion; second world war; business development service; area of education; pursuit of prosperity; business plan competition; informal sector worker; Identification for Development; targeted social pensions; probability of occurrence; protection from risk; agriculture and service; impact of poverty; conditional cash transfer; informal economic activity; Early Childhood Development; catastrophic loss; statutory contribution; effective risk; social policies; social policy; Informal Economy; labor policy; Learning and Innovation Credit; Labor Policies; public policy; base tax; share instrument; traditional model; active labor; salaried employment; market failure; poverty prevention; social cost; worker protection; policy option; nonstandard employment; social security; labor share; redistribution objectives; public resource; in economics; social contract; general revenues; employment relationship; policy package; employment contract; digital technology; advanced economy; tax resources; Informal Work; eligibility threshold; human capital; individual saving; defined benefit; development perspective; fiscal cost; Wage Bill; pension system; systemic shocks; insurance market; financial risk; community ties; Data Visualization; modern credit; public economics; poor household; vulnerable people; social objective; factor market; increasing diversity; strategic objective; holistic approach; written submission; eliminating poverty; risk pool; technological advancement; employment status; poverty relief; work contracts; medical risks; disruptive change; state revenue; social transfer; job status; Social Welfare; state intervention; recent experiences; market insurance; program structure; government budget; new technology; payment system; informal employment; shadow economy; administrative datum; government mandate; job transitions; preventive action; social outcome; benefit payment; Transition economies; participation rate; old poor; tax rate; general practitioner; think tank; research fellow; digital dividend; primary author; transition economy; old-age pension; undergraduate degree; fiscal policy; pension policy; biometric identification; Fiscal policies; research focus; policy work; higher-income countries; diagnostic tool; public finance; social affairs; economic geography; smooth consumption; economic integration; employment measure; labor economist; financial instrument; employment outcome; saving behavior; market interaction; general secretary; operational work; market activity; legal system; managing risk; policy tool; operational tool; peer-reviewed journal; social implications; national employment; nutrition assistance; administrative region; replacement rate



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Packard,Truman G. Gentilini,Ugo Grosh,Margaret Ellen O'Keefe,Philip B. Palacios,Robert J. Robalino,David A. Santos,Indhira Vanessa

Protecting All : Risk Sharing for a Diverse and Diversifying World of Work (English). Washington, D.C. : World Bank Group.