Motivations for introducing a statutory minimum wage in developing countries include reducing poverty, advancing social justice, and accelerating growth. Attaining these goals depends on the national context and policy choices. Institutional capacity tends to be limited, so institutional...

Jobs are critical to poverty reduction and inclusive growth in Sierra Leone, where more than half the population is poor and most are dependent on labor earnings. Adding to the jobs challenge is the young and growing population and therefore the need for substantial job creation, coupled with...

This paper solves and estimates a stochastic model of optimal inter-temporal behavior to assess how changes in the design of the unemployment benefits and pension systems in Brazil could affect savings rates, the share of time that individuals spend outside of the formal sector, and retirement...

This Note systematizes the economic evaluation of Jobs Investment Projects. It explains the limitations of past approaches that have regarded jobs only as a by-product of growth. It focuses on market failures that create a gap between the social and private return on investments and reduce the...

This paper investigates the efficiency of investments by firms and workers in a matching model with high- and low-productivity jobs. Search is sector specific and random within sectors. Search frictions and ex-post bargaining imply that wage inequality arises as a result of the difference in...

This article analyzes changes in the product mix by Chilean manufacturing plants in the period 1996--2003. Three quarters of the surviving plants changed the set of products produced and more than three quarters of the exporting plants changed the mix of products they exported during the sample...

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation.