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IZA/World Bank Conference
Employment and Development

June 8-9, 2007
Deutsche Post World Net Headquarters
Bonn, Germany
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Organizing Committee
Randall Akee (IZA)
Robert Holzmann (World Bank and IZA)
Stefano Scarpetta (OECD and IZA)
Klaus F. Zimmermann (IZA, University of Bonn, and DIW Berlin)
 

Scientific Committee
Randall Akee (IZA)
Nancy Chau (Cornell University and IZA)
Jean Fares (World Bank)
Ira Gang (Rutgers University and IZA)
Robert Holzmann (World Bank and IZA)
David Jaeger (College of William and Mary and IZA)
Pierella Paci (World Bank)
Carmen Pagés (World Bank and IZA)
Friederike Rother (World Bank)
Stefano Scarpetta (OECD and IZA)
Jan Svejnar (University of Michigan and IZA)
Katherine Terrell (University of Michigan and IZA)
Anzelika Zaiceva (IZA)
Klaus F. Zimmermann (IZA, University of Bonn, and DIW Berlin)
 

About the Conference
Recent economic and social transformations have put developing countries on higher and more sustainable growth paths. In too many cases, however, poor labor market conditions still lead to high unemployment, poor working conditions, low wages and increased inequality and exclusion. Labor is often the only asset of the poor and a growth process that is not associated with job creation may therefore fail to reduce poverty. A well functioning labor market can be key for an environment where new firms are created and private agents find the proper incentives to invest and innovate. Sound labor policies that promote the creation of more and better jobs are needed to guarantee the success of structural reforms, to maintain the social support for those reforms, and to ensure that the benefits are widely distributed. Achieving these targets is crucial to an effective implementation of poverty-reduction strategies and, hence, progress towards the Millennium Development Goals.

Against this background, the World Bank has developed a proposal for operationally-oriented research program on "Labor Market, Job Creation and Growth". The proposal has been advanced in discussions with the research community, other international organizations (such as ILO) and bilateral aid organizations in Europe, America and Asia. To move the proposed research agenda forward, IZA and the World Bank have launched a new IZA research area on Employment and Development in 2006. This program aims to assist the international research community in addressing research priorities related to employment and development, including those identified by the World Bank.

More information:
- First IZA/World Bank Conference on Employment and Development (Berlin 2006)
- IZA Program Area "Employment and Development"
 

Photo Gallery
 

Program
Friday, June 8

09:00 – 09:30 Opening Remarks
Gudrun Grosse-Wiesmann
(Deputy Director-General, Multilateral and European Development Policy, Federal Ministry for Economic Cooperation and Development (BMZ), Germany)
Michal Rutkowski (Director Human Development Middle East and North Africa Region, World Bank, USA)
09:30 – 10:30 Keynote Address
“Unemployment and Job Creation”
Jan Svejnar (University of Michigan, USA and IZA)
10:30 – 12:00 Parallel Sessions A
Session A.1 Returns to Education and Schooling Decisions
10:30 – 11:00 “Returns to Education in Chinese and Indian Formal Sectors: Implications for Skills Shortages”
Olivier Bargain (University College Dublin and IZA)
Sumon Kumar Bhaumik (Brunel University, UK and IZA)
Manisha Chakrabarty (Keele University, UK)
Zhong Zhao (IZA, Germany)
11:00 – 11:30 “To Study or to Work? Education and Labour Market Participation of Young People in Poland”
Francesco Pastore (University of Naples II, Italy and IZA)
11:30 – 12:00 “Education and Labour Market Outcomes in Sub-Saharan West Africa”
Christophe J. Nordman (DIAL, France)
Mathias Kuepie (DIAL, France)
François Roubaud (DIAL, France)
Session A.2 Informal Sectors
10:30 – 11:00 “Modelling Interactions between the Formal and Informal Sectors in a Developing Economy”
John Bennett (Brunel University, UK and IZA)
Saul Estrin (London School of Economics, UK and IZA)
11:00 – 11:30 “Labor Flows in Formal and Informal Labor Markets in Brazil”
Jasper Hoek (U.S. Department of the Treasury, USA and IZA)
11:30 – 12:00 “Job Duration and the Informal Sector in Brazil”
Gabriel Ulyssea (Institute for Applied Economic Research, Brazil)
Dimitri Szerman (Institute for Applied Economic Research, Brazil)
Session A.3 Special World Bank Session: Youth Employment Interventions: A Global Inventory
10:30 – 12:00 “A Global Inventory of Youth Employment Interventions: What Could Be Learned?”
Jean Fares (World Bank, USA)

Discussion:
Jochen Kluve (RWI Essen, Germany and IZA)
Donald Lee (United Nations, DESA, USA)
Frank Tibitanzl (Head of the Sector Project on Employment, GTZ, Germany)
International Labour Organization/YEN (TBC)
Session A.4 Trade and Globalization
10:30 – 11:00 “Export Processing Zones in Madagascar: The Impact of the Dismantling of Clothing Quotas on Employment and Labour Standards”
Jean-Pierre Cling (DIAL, France)
Mireille Razafindrakoto (DIAL, France)
Francois Boisroubaud (DIAL, France)
11:00 – 11:30 “Market Access Impact on Individual Wages: Evidence from China”
Laura Hering (University of Paris 1, France)
Sandra Poncet (University of Paris 1, France)
11:30 – 12:00 “Employment and Welfare Consequences of Centralized Wage Setting: Evidence from Italy”
Mario Macis (University of Chicago, USA)
Session A.5 Child Labor and Educational Choices
10:30 – 11:15 “The Twin Challenges of Child Labor and Youth Employment in Ethiopia”
Furio Rosati (Understanding Children’s Work (UCW) and University of Rome Tor Vergata, Italy and IZA)
Lorenzo Guarcello (UCW and University of Rome Tor Vergata, Italy)
Scott Lyon (UCW and University of Rome Tor Vergata, Italy)
11:15 – 12:00 “Employment Avenues for the Youth in India: Some Evidence and Some Options”
Manisha Singh (India Development Foundation, India)
12:00 – 13:00 Open Lunch for Conference Participants
12:00 – 13:00 Working Lunch with Bilateral Institutions and Donors:
“A Reflection on the Emloyment and Development Agenda One Year Later: How to Promote Policy Relevant Research”
(by invitation only)
13:00 – 14:30 Parallel Sessions B
Session B.1 Minimum Wages
13:00 – 13:30 “Minimum Wages and the Welfare of Workers in Honduras”
Katherine Terrell (University of Michigan, USA and IZA)
T. H. Gindling (University of Maryland, USA)
13:30 – 14:00 “Minimum Wage and Tax Evasion: Theory and Evidence”
Mirco Tonin (Stockholm University, Sweden)
14:00 – 14:30 “Minimum Wages in Kenya”
Carmen Pagés (Inter-American Development Bank, USA and IZA)
Mabel Andalon (Cornell University, USA)
Session B.2 Gender and Economic Development
13:00 – 13:30 “Gender Discrimination and Returns to Self-Employment: Evidence from Rural India”
Hari Nagarajan (National Council for Applied Economic Research (NCAER), India)
Klaus Deininger (World Bank, USA)
Songqing Jin (World Bank, USA)
13:30 – 14:00 “Women’s Labour Market Participation in Egypt, Jordan, Morocco, Syria & Tunisia: A Three-Level Analysis”
Niels Spierings (Radboud University Nijmegen, The Netherlands)
Jeroen Smits (Radboud University Nijmegen, The Netherlands)
14:00 – 14:30 “Why Do Women Have Longer Unemployment Durations Than Men in Post-Restructuring Urban China?”
Xiao-Yuan Dong (University of Winnipeg, Canada),
Feng-Lian Du (Inner Mongolia University, China)
Session B.3 Informal and Underground Economy
13:00 – 13:30 “Comparative Advantage, Self-Selection and Informal Earnings: A Marginal Treatment Effects Approach”
Melanie Khamis (London School of Economics, UK)
Omar Arias (World Bank, USA)
13:30 – 14:00 “Does the Underground Economy Hold Back Financial Deepening? Evidence from the Italian Credit Market”
Roberta Zizza (Bank of Italy, Italy)
Giorgio Gobbi (Bank of Italy, Italy)
14:00 – 14:30 “The Effects of Inequality on the Dynamics of the Informal Economy”
Roxana B. Gutierrez Romero (University of Cambridge, UK)
Session B.4 Dynamic Labor Market Concerns
13:00 – 13:30 “Multidimensional Human Capital, Wages and Endogenous Employment Status in Ghana”
Niels-Hugo Blunch (Washington and Lee University, USA)
13:30 – 14:00 “Urban Labour Market Dynamics in Cameroon, 1993-2005: Does Growth Transmit to the Households?”
Sébastien Merceron (DIAL, France)
François Roubaud (DIAL, France)
Constance Torelli (DIAL, France)
14:00 – 14:30 “An Occupational Choice Model for Developing Countries”
Gerardo Jacobs (Universidad de Guanajuato, Mexico)
Session B.5 Employment and Poverty Reduction
13:00 – 13:30 “Does Employment Generation Really Matter for Poverty Reduction?”
Catalina Gutierrez (World Bank, USA)
Pierella Paci (World Bank, USA)
Pieter Serneels (World Bank, USA)
Carlo Orecchia (World Bank, USA)
13:30 – 14:00 “Household Characteristics, Employment and Poverty in India”
Uma Rani (Gujarat Institute of Development Research, India)
Juan Pedro Schmid (University of Zurich, Switzerland)
14:00 – 14:30 “The Employment Creation Impact of the Addis Ababa Integrated Housing Program”
Bob Rijkers (University of Oxford, UK)
14:30 – 15:00 Coffee Break
15:00 – 16:30 Parallel Sessions C
Session C.1 Conditional Cash Transfer Programs and Child Labor – Three Latin American Case Studies
15:00 – 15:30 “The Impact of Conditional Cash Transfer Programs on Household Work Decisions in Brazil”
Andrea Ferro (University of São Paulo, Brazil)
Alexandre Nicollela (University of São Paulo, Brazil)
15:30 – 16:00 “The Effects of Shocks on Education and Child Labour: Evidence from Colombia”
Emla Fitzsimons (Institute for Fiscal Studies London, UK)
Alice Mesnard (Institute for Fiscal Studies London, UK)
16:00 – 16:30 “Local Labor Demand and Child Labor”
Marco Manacorda (University of London, UK)
Furio Camillo Rosati (University of Rome Tor Vergata, Italy)
Session C.2 Special World Bank Session: The Effect of Trade Liberalization on Wages and Working Conditions
15:00 – 15:30 “Globalization and Employment Conditions”
Drusilla Brown (Tufts University, USA)
15:30 – 16:00 “A Framework for Analyzing Globalization and Working Conditions in Developing Countries”
Raymond Robertson (Macalester College, USA)
16:00 – 16:30 “Developing Indicators of Compliance with Labor Standards”
David Kucera (International Labor Organization (ILO), Switzerland)
Session C.3 Self-Selection, Migration and Remittances
15:00 – 15:30 “Determinants of Migrants’ Remittances – Empirical Evidence from Germany”
Mathias Sinning (RWI Essen, Germany and IZA)
15:30 – 16:00 “Who's Leaving? Deciphering Immigrant Self-Selection from Developing Countries”
Randall Akee (IZA)
16:00 – 16:30 “Remittances, Liquidity Constraints and Human Capital Investments in Ecuador”
Robert Sparrow (Institute of Social Studies, The Netherlands)
Session C.4 Labor Market Institutions, Unemployment and Training Programs
15:00 – 15:30 “Ganyu Labor in Malawi: Efficiency Problems and Determinants of Supply”
Anke Weber (University of Zurich, Switzerland)
Ralitza Dimova (Brunel University, UK)
Katharina Michaelowa (University of Zurich, Switzerland)
15:30 – 16:00 “Effects of Youth Training in Developing Countries: Evidence from a Randomized Training Program in Colombia”
Adriana Kugler (University of Houston, USA and IZA)
16:00 – 16:30 “Are Labour Market Institutions Endogenous? An Investigation of Unemployment, Unions and Wages”
Daniele Checchi (University of Milan, Italy and IZA)
Session C.5 Efficiency of Labor Market Regulations and Interventions
15:00 – 15:30 “A Theory of Employment Guarantees: Contestability, Credibility and Distributional Concerns”
Nancy Chau (Cornell University, USA and IZA)
Arnab K. Basu (College of William & Mary, USA and ZEF)
Ravi Kanbur (Cornell University, USA)
15:30 – 16:00 “The Efficiency-Equity Trade-off of Labor Market Regulations: Evidence from Brazilian Cities”
Rita Almeida (World Bank, USA and IZA)
Pedro Carneiro (University College London, UK and IZA)
16:00 – 16:30 “Helping or Hurting Workers? Assessing the Effects of De Jure and De Facto Labor Regulation in India”
Carmen Pagés (Inter-American Development Bank, USA and IZA)
Ahmad Ahsan (World Bank, USA)
16:30 – 18:00 Policy Panel
Outcomes of Labor Market Policies – What Do Policy Makers Expect?
Chair: Michal Rutkowski (Director Human Development Middle East and North Africa Region, World Bank, USA)

H.E. Dr. Munther Masir (Head of National Council for Human Resources Development, Jordan)
Stefano Scarpetta (OECD, France and IZA)
Raymond Torres (Head of Division, OECD, France)
Rolph Van der Hoeven (Director, International Labor Organization Policy Coherence Group)
19:00 Conference Dinner Cruise
Saturday, June 9

09:30 – 09:45 Opening Address
Bärbel Dieckmann (Mayor of Bonn, Germany)
09:45 – 10:45 Keynote Address
“Breaking the Rules: The Success of Developing Countries whose Policies Diverge from Market Ideals”
Richard B. Freeman (Harvard University, USA and IZA)
10:45 – 11:00 Coffee Break
11:00 – 12:30 Parallel Sessions D
Session D.1 Income Support Schemes for the Unemployed
11:00 – 11:15 “Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa”
Stephan Klasen (University of Göttingen, Germany and IZA)
Ingrid Woolard (University of Cape Town, South Africa)
11:45 – 12:30 “An Extensive Look at the Benefits of Workfare Programs”
Marcos Vera-Hernandez (University College London, UK)
Orazio Attanasio (University College London, UK)
Costas Meghir (University College London, UK and IZA)
Session D.2 Migration and Households
11:00 – 11:45 “Migration, Risk and the Intra-Household Allocation of Labor in El Salvador”
Timothy Halliday (University of Hawaii, USA)
11:45 – 12:30 “Brain Drain and Brain Gain: Evidence from an African Success Story”
Catia Batista (University of Oxford, UK and IZA)
Aitor Lacuesta (Bank of Spain, Spain)
Pedro C. Vicente (University of Oxford, UK)
Session D.3 Special World Bank Session: Labor Market Diagnosis in Low Income Countries
11:00 – 12:30 “Developing a Guide for Labor Market Diagnosis in Low and Middle Income Countries”
Gary Fields (Cornell University, USA and IZA)
Dhushyanth Raju (World Bank, USA)

Chair:
Stefano Scarpetta (OECD, France and IZA)

Discussants:
Jeffery Dayton-Johnson (OECD, France)
Pierella Paci (World Bank, USA)
Session D.4 Child Labor, Labor Markets and Schooling
11:00 – 11:30 “Migration, School Attainment and Child Labor: Evidence from Rural Pakistan”
Ghazala Mansuri (World Bank, USA)
11:30 – 12:00 “Official Duty vs. Private Practice: Teachers and Markets for Tutoring in Poor Countries”
Bibhas Saha (University of East Anglia, UK)
Vegard Iversen (International Food Policy Research Institute, India)
Subhra Baran Saha (Ohio State University, USA)
12:00 – 12:30 “Early Childhood Investments in Human Capital: Parental Resources and Preferences”
Sonia Bhalotra (University of Bristol, UK and IZA)
Session D.5 Social Capital and Labor Market Satisfaction
11:00 – 11:45 “What Do Teachers Want and Does It Matter? Job Satisfaction and Employee Performance”
Hai-Anh Dang (University of Minnesota, USA)
F. Halsey Rogers (World Bank, USA)
11:45 – 12:30 “Neighborhood Effects and the Urban Labour Market in West Africa”
Gilles Spielvogel (DIAL, France)
F. Rouboud (IRD, DIAL, France)
P. De Vreyer (University of Lille, DIAL, France)
12:30 - 13:30 Open Lunch for Conference Participants
13:30 – 15:00 Parallel Sessions E
Session E.1 Trade and Globalization II
13:30 – 14:00 “Labor Market Issues under Trade Liberalization: Implications for Thai Workers”
Piriya Pholphirul (National Institute for Development Administration, Thailand)
14:00 – 14:30 “The Effects of Globalization on Working Conditions: El Salvador 1995-2005”
Alvaro Trigueros-Arguello (Salvadoran Foundation for Economic and Social Development, El Salvador)
Raymond Robertson (Macalester College, USA)
14:30 – 15:00 “Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform”
Eric V. Edmonds (Dartmouth College, USA and IZA)
Nina Pavcnik (Dartmouth College, USA)
Petia Topalova (Research Department IMF, USA)
Session E.2 Earnings Mobility
13:30 – 14:00 “Earnings Mobility in Argentina, Mexico, and Venezuela: Testing the Divergence of Earnings and the Symmetry of Mobility Hypotheses”
Maria Laura Sanchez Puerta (World Bank, USA)
Gary Fields (Cornell University, USA and IZA)
14:00 – 14:30 “For Better or for Worse? Jobs and Earnings Mobility in a Sample of Developing and Emerging Economies”
Stefano Scarpetta (OECD, France and IZA)
14:30 – 15:00 “Rural Nonfarm Employment and Incomes in the Eastern Himalayas”
Maja Micevska (University of Klagenfurt, Austria)
Dil Bahadur Rahut (University of Bonn, Germany)
Session E.3 Self-Employment
13:30 – 14:00 “Becoming an Entrepreneur”
Hugo Nopo (Inter-American Development Bank, USA and IZA)
Patricio Valenzuela (Inter-American Development Bank, USA)
14:00 – 14:30 “Religion and Entrepreneurship”
Jagannadha Tamvada (Max Planck Institute for Economics, Germany)
David Audretsch (Max Planck Institute for Economics, Germany)
Werner Boente (Max Planck Institute for Economics, Germany)
14:30 – 15:00 “Health Shocks, Job Quality, and Self-Employment in Africa”
Courtney Monk (University of Oxford, UK)
Francis Teal (University of Oxford, UK)
Session E.4 Special OECD Session: Work and Well-Being in Developing Countries: Concepts, Measurement and Policies
13:30 – 14:00 “Work and Well-Being: Opportunities and Risks in Informal Labour Markets”
Johannes Jütting (OECD, France)
14:00 – 14:30 “Formalizing the Informal? – A South African Perspective”
Miriam Altman (Human Sciences Research Council, South Africa)
14:30 – 15:00 “Stimulating the Informal Economy and Labour Markets Through Skill Development: Some Policy Orientations”
Pierre Jacquet (French Development Agency (AFD), France)
Discussant: Nalia Kabeer (Institute for Development Studies, UK)
Session E.5 Transition Economies
13:30 – 14:15 “Informal Employment and Labor Market Segmentation in Transition Economies: Evidence from Ukraine”
Hartmut Lehmann (University of Bologna, Italy and IZA)
Norberto Pignatti (University of Bologna, Italy and IZA)
14:15 – 15:00 “Unemployment and Worker-Firm Matching: Theory and Evidence from East and West Europe”
Jan Svejnar (University of Michigan, USA and IZA)
Daniel Münich (CERGE-EI, Czech Republic)
15:00 – 15:30 Coffee Break
15:30 – 17:00 Parallel Sessions F
Session F.1 Employment and Poverty Reduction II
15:30 – 16:15 “The Targeting and Poverty Effect of the ‘Jefes y Jefas’ Workfare Program during the Argentine Crisis”
Jan Priebe (University of Göttingen, Germany)
16:15 – 17:00 “Speaking English in a Globalizing World: Information Technology and Education in India”
Gauri Kartini Shastry (Harvard University, USA)
Session F.2 Employment Protection and Jobs in Developing Countries
15:30 – 16:00 “Employment Protection, Firm Selection, and Growth”
Markus Poschke (European University Institute Florence, Italy and IZA)
16:00 – 16:30 “Do Labor Market Conditions Affect The Strictness of Employment Protection Legislation?”
Enrico Saltari (University of Rome La Sapienza, Italy)
Riccardo Tilli (University of Rome La Sapienza, Italy)
16:30 – 17:00 “Assessing Job Flows across Countries: The Role of Industry, Firm Size and Regulations”
Stefano Scarpetta (OECD, France and IZA)
John C. Haltiwanger (University of Maryland, USA and IZA)
Helena Schweiger (European Bank for Reconstruction and Development (EBRD), UK)
Session F.3 Long Run Effects of Child Labor
15:30 – 16:15 “Lifetime Health Consequences of Child Labor in Brazil”
Peter Orazem (Iowa State University, USA and IZA)
Chanyoung Lee (Iowa State University, USA)
16:15 – 17:00 “Is Child Labor Harmful? The Impact of Working Earlier in Life on Adult Earnings”
Patrick Emerson (Oregon State University, USA)
André Portela Souza (São Paulo School of Economics, Brazil)
Session F.4 Unemployment: Institutions, Transition and Programs
15:30 – 16:00 “Does Unemployment Insurance Help Explain Unemployment in Transition Countries?”
Axel Heitmueller (London Business School, UK and IZA)
Simon Commander (London Business School, UK and IZA)
16:00 – 16:30 “Do Unemployment Benefits Promote or Hinder Structural Change?”
Tito Boeri (Bocconi University, Italy and IZA)
Mario Macis (University of Michigan, USA)
16:30 – 17:00 “Youth Unemployment, Labor Market Transitions, and Scarring: Evidence from Bosnia and Herzegovina, 2001-2004”
Jean Fares (World Bank, USA)
Erwin R. Tiongson (World Bank, USA)
18:00 Conference Dinner