#8 Which Comes First – the Chicken, the Egg, or the Demand for Poultry Products? Engels Law and the Design of Jobs Strategies in Low-Income Countries (LICs)

Authors: Dino Merotto and Elena Casanovas, Jobs Group, World Bank. In in blog #2 and blog #3 in this series we focused on the evolution of the sectoral pattern of production and jobs as countries develop. But new research suggests that changing patterns of consumption and net trade should also be taken into account when…

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Why Aren’t More Women In Honduras Working?

By Veronica Michel & Ian Walker   New findings show that, like their counterparts in many neighboring countries, Honduran women are sorely underrepresented in the job market. Because of this, the country’s economy is losing about 22 percent of potential per capita income – even more than the 17 percent loss for Latin America and…

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#4 Labor Productivity Grows Faster in Developing Countries When Labor Moves from Agriculture into Waged Jobs

Author: Dino Merotto, Jobs Group, World Bank. Blog #1 in our series showed that growth in labor productivity explains the differences in per capita income growth across countries. When we break down labor productivity growth into within and between sector components, we see that the reallocation of labor from lower productivity agriculture to higher productivity…

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#3 What are the Patterns of Structural Change Across Income Levels? And What Growth Processes Generate Them?

Author: Dino Merotto, Jobs Group, World Bank. Blog #2 in our series showed how the share of employment in services rises as countries get richer, and the share in agriculture falls. In this blog, we combine the pattern of GDP with that of employment. Three simple charts show vividly how both the structure of GDP…

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#2 Most People in Most Countries Work in Farming and Services, not in Factories

Authors: Dino Merotto and Andreas Eberhard-Ruiz, Jobs Group, World Bank. Data on employment shares by sector show the rising importance of service jobs as countries get richer – and a corresponding decline in the share of agriculture jobs. Manufacturing, in contrast, plays a much less important part in the shift to higher incomes and it…

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#1 Better, Not More Jobs are Associated with Increased Per Capita Income

Authors: Dino Merotto and Andreas Eberhard-Ruiz, Jobs Group, World Bank. Perhaps the most fundamental finding from Jobs Diagnostics is that it isn’t adding more of the existing stock of jobs that raises a country’s per capita income. Rather, it is improving the productivity of a country’s jobs that matters more. When we split the sources…

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