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"The interaction of structural adjustment policies with the evolution of wages and employment worldwide, and ... the examples of Chile and Indonesia during recent periods of policy reform."--Page 4 of cover.
Since the introduction of structural adjustment policies in the 1980s, the ILO has expressed concern that their implementation should be consistent with basic ILO standards, particularly certain core human rights conventions.
The paper provides an overview of the main elements of pay systems that are typically used to remunerate government employees and, with reference to the experience of developed and developing countries, discusses structural issues frequently arising in the formulation of government pay policies: (1) the role of fringe benefits in the compensation system; (2) the pros and cons of a greater merit orientation in the pay system and of special pay schemes designed to remunerate staff at the professional and managerial level; and (3) factors determining internal pay differentials with special emphasis on the compressing effect of flat amount cost of living adjustments.
Work relief is critical to any structural adjustment program, so long as the skills needed to provide public works match the skills held by the (mainly) manual workers needed. Women and displaced white-collar workers may be better served by public service employment or subsidized private employment.
International competition, accelerating technological change and shifting societal concerns are important drivers of structural change, both within and across firms, industries and regions. As well as bringing undoubted opportunities, structural ...
Overstaffed bureaucracies afflicted by eroding salaries, demoralization, corruption, moonlighting, and chronic absenteeism are often unable to carry out the key tasks of economic recovery. What should the Bank do about it?
This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.