Meritocracy

This article talks about the benefits and risks of meritocracy “Repairing the rungs on the ladder”. In this topic using the Social Mobility Survey (Encuesta de Movilidad Social) from CEEY 2011 we can see that there are is difference from people who get a job through social networks in the formal and informal sector. People without social security get jobs through family, while people with access to social security use more their social network of friends.

Lessons on youth unemployment

Germany, the Netherlands and Denmark are controlling youth unemployment, some lessons can be learned. Read the complete note here

Social health insurance and labor markets

On a hot topic over the recent months,  this working paper summarizes the main findings.

Productivity vs. wages

The relationship between productivity and wages has changed in the last years in the United States. Read the note here.

Labor market outcomes and gender gap in LAC

In this interesting study labor market outcomes between men and women are analyzed for countries of the region. For example, it has been found that while wage gap between men and women has decreased in the last years the convergence is slow and today an average wage gap of 17 per cent for the region remains.

Individual labor market participation in México

Having individual information about densities of contributions in labor markets is very important to calculate several variables of pensions systems. In Mexico the national employment survey include a new section on historical labor market participation of respondents. The link with the information and the microdata is here.

Mexico´s labor market: a case study

As we reported in a previous post, Mexico was chosen as one of the seven study cases for the World Development Report 2013 of the World Bank. In this link you can read a brief summary of the main findings of the study, that was coordinated by the CISS and funded by the IDRC of Canada.

More on jobless recovery in the US

In previous post we have discussed the phenomenon of jobless recovery in the US. Here is a new paper that argues that jobless recovery in US  can be attributed to job losses in middle-skill, routine occupations. 

World Development Report 2013

The World Development Report 2013: Jobs is already available here. The CISS contributed, financed by the IDRC, with the Mexico case study.

Labor reform in Mexico

The Congress approved a substantial reform to the Labor Law in Mexico. Now the reform should be approved by the Senate. The official note on the reform can be read here.

Labor reform in Mexico

Apparently, the clogs are moving in Congress and there is a window to reform labor law in Mexico. Here is a policy note on the issue.

Britain's jobs crisis is deepening

In Britain, almost half of unemployed workers aged 50 or over 50 have been out of work for a year or more. More information here.

France implements measures to stimulate growth

The French government announced some measures to stimulate growth and protect jobs. Raising the rate of VAT to finance labor costs and thus it will be possible to reduce the contributions tax work. For more information see here and here.

Indicators of old-age pension benefits in the Americas

Finally, Chapter 7 of the Americas Social Security Report 2012 is aimed at monitoring pension benefits with a perspective of fairness and financial sustainability. By knowing the value of future pension benefits, we can also have a proxy of the debt incurred by social security institutions and governments through their social security pension programs.

Two mail indicators of pension benefits are examined: replacement rates and pension wealth. The average gross replacement rate across CISS-member countries (exluding U.S. and Canada), salaries and gender is 48.9 (average net replacement rate is 54.3). The average gross pension wealth across the distribution of salaries in all LAC countries is 8.4 times the annual salary (average net pension wealth is 9.3)

Key features of general pension regimes for old age

Chapter 6 of the Americas Social Security Report 2012 outlines the methods used to perform the calculations, describes the common patterns found in the formulas defined by legislations to calculate old-age pensions, and discusses the more critical assumptions needed to reach calculations of the next chapter.

The chapter describes the main features of general pension regimes for old age. Among these features are: design, minimum and maximum pensions, pensionable ages, early and late retirement, and years of contribution.

Work for older adults, technology and health

Chapter 5 of the Americas Social Security Report 2012 discusses the extent to which older adults are able to find decent and dignified work after the age of 60, balancing technological, medical, and preventive advantages, but recognizing that illness and fragility are a really for a large portion of the population.

Under the current structure of social security schemes, individuals do not have the necessary incentives to plan renewing their professional career. To facilitate the renewal of careers is required changes in educational programs and job training, and labor laws.

Collective decisions on retirement

Chapter 4 of the Americas Social Security Report 2012 aims to review the policy debates around the setting of retirement ages. Review the most important approaches and findings of the politics behind retirement decisions. Governments have to make decisions on the amount of taxes and benefits to be paid, the statutory retirement age, and on the conditions offered to adults in pre-retirement ages.

In the Americas there is a pending agenda regarding pension reform to adjust retirement ages vis-à-vis life expectancy increases, as well as standardizing retirement ages across sexes.

Mexico: Approve the return Infonavit resources to retirees

The Senate approved amendments to the Law of Infonavit with which all workers who have not exercised their home loan may recover their contributions, enjoying a second loan and hire their loans in pesos, not minimum wages. Complete note here.

Individual decisions on retirement

Chapter 3 of the Americas Social Security Report 2012 analyzes how "social security wealth" or "pension entitlements" are generated, and how retirees spend their money. The realization of a retirement even does not depend only, and often not even mainly, upon the parameters of a retirement scheme. Individuals may decide to withdraw from the labor market before the statutory retirement age or to work several years more for reasons of need, family conditions, health, or personal motivation.

These are some of the results of the chapter:
- Individuals work more when their earnings are high and growing, and when they decline or their growth is sluggish, retirement becomes a more attractive option every year.
- More educated individuals tend to retire later in life because earnings growth is higher for them.
- Often workers move from a salaried job to the informal economy to improve their earnings levels.
- Labor market conditions affect workers' decisions on retirement.
- Consumption and work decisions are closely linked. When retirement can induce an excessive fall in consumption, individuals may decide to put it off for a few years.
- Persons seek to stabilize welfare, avoiding alternate periods of high well-being with others of a poor quality of life

Labor market behavior and retirement in the Americas

Chapter II of the Americas Social Security Report 2012 describes the main regional trends in labor variables around statutory retirement ages. It analyzes labor force participation, intensity of work by older adults, earnings of wotking older adults, characteristics of occupied labor, and urban/rural comparisons.

In previous notes we saw some graphs and results, but these are the main conclusions of the chapter:
- Individuals around retirement ages are working more in the Americas when compare 2010 with 1970, with few exceptions.
- There remains a decline in participation in the labor force that usually begins around age 50 and accelerates at age 60.
- Those staying in the market after age 50 have low unemployment, but they work gradually less hours per week.
- There is a very sharp decline in average earnings after age 50 in Latin America.
- By age 60, workers have become self-employed or employers.
- Young women work more in the urban sector, whereas adult women have higher participation in rural areas. Men in the rural sector have higher participation rates, except for the age groups between 30 and 59 years ald when rates are similar. Hours worked and wages are always higher in urban areas.