This paper shows that the increased policy-selectivity of aid allocations observed in recent years provides recipient countries an incentive to improve policies. The paper estimates that a change in the World Banks Country Policy and Institutional Assessment policy index from 1.5 to 2 for a...

This study investigates the World Bank's use of lending and non-lending instruments to affect the policy priorities of developing countries. In a typical year, the World Bank lends more than USD 30 billion to its client countries. It also spends approximately USD 200 million on the provision of...

This study analyzes gender differences in labor productivity in the formal private sector, using data from 128 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among female- than male-managed firms. The...