Can Raising Japan’s Minimum Wage Accelerate Wage Growth?

2019-03-26T14:33:03-04:00November 28, 2016|

By Luc Everaert and Giovanni Ganelli

Version in 日本語 (Japanese)

Japan’s minimum wage is 798 JPY ($6.52) per hour, lower than many other advanced countries, including the United States, and among the lowest relative to the average wage (see chart). For a country that needs consumers to boost spending to pull the economy out of 15 years of deflation and reinvigorate growth, a hike in wages across the board can go a long way. […]

The African Century

2019-03-27T15:32:16-04:00August 3, 2015|

By Antoinette M. Sayeh and Abebe Aemro Selassie

If, as has been observed, demography is destiny, this will be the African century.

Most countries in sub-Saharan Africa are on the cusp of a demographic transition—the years when the share of young and old in the population declines and those in working age range (15-64 years) increases.

Elsewhere, this transition has generally been accompanied by higher savings, incomes, and economic growth. Our latest Regional Economic Outlook for sub-Saharan Africa looks at how the transition might play out and the implications for economic policies.
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Does Raising the Minimum Wage Hurt Employment? Evidence from China

2017-04-14T01:52:15-04:00October 23, 2014|

Prakash LounganiBy Prakash Loungani

(version in 中文)

Raising the minimum wage is a polarizing issue. One side worries that raising it will lower employment. The other side downplays the impact on employment and plays up the positive impact on the living standards of the poor. Both sides are able to cling to their beliefs as the evidence, much of which comes from high-income (“advanced”) economies, is mixed.

The majority of the global labor force, however, is in […]

Era of Benign Neglect of House Price Booms is Over

2017-04-14T01:59:19-04:00June 11, 2014|

Min ZhuBy Min Zhu

(Versions in  عربيEspañol, 日本語中文, Français, and Русский)

House prices are inching up.  But is this a cause for much cheer?  Or are we watching the same movie again? Recall how after a decade-long boom, house prices started to fall in 2006, first in the United States and then elsewhere, contributing to the 2008-9 global financial crisis. In fact, our research indicates that boom-bust patterns in house prices preceded more […]

Managing the revenue from natural resources—what’s a Finance Minister to do?

2017-04-14T01:59:33-04:00June 9, 2014|

By Sanjeev Gupta and Enrique Flores

(Versions in Español)

The Finance Minister answers her mobile. On the line is the Minister of Energy, who informs her that the country has struck oil and that he expects revenues from its sale to start flowing into the budget in the coming four years. While excited by the prospects of higher revenues—indeed the average resource-rich country gets more than 15 percent of GDP in resource revenues—she starts to ponder how to use these revenues for her country’s development. She is aware that only […]

Lagarde: Women Can Help Grow the World Economy

2017-04-14T02:16:21-04:00September 23, 2013|

(Versions in Español and عربي)

Hot off the press: a new study out today from our economists pointing to the striking economic benefits that could come from increased female participation in the work force.

IMF Chief Christine Lagarde, calling attention to the findings of the paper, “Women, Work, and the Economy,” made the case for policymakers to shift into high gear and give women equal opportunities to participate in the work force.

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Seven Billion Reasons to Worry: the Financial Impact of Living Longer

2017-04-15T14:10:32-04:00April 11, 2012|

Everyone wants at some point to stop working and enjoy retirement. In these uncertain economic times, most people worry about their pension. Now take your worries and multiply those several billion times. And the problem is likely bigger still: although living longer, healthier lives is a good thing, how do you afford retirement if you will live even longer than previously thought?

Beyond Growth: the Importance of Inclusion

2017-04-15T14:21:27-04:00July 7, 2011|

Economists care about growth. Governments care about what it can achieve: more jobs and more income for more people. An increasing number of African countries have been growing robustly for more than a decade. But while growth is a necessary condition for poverty reduction and employment creation, is it also sufficient?

Global Growth Hits a Soft Patch

2017-04-15T14:21:53-04:00June 17, 2011|

Despite a mild slowdown, the global economic recovery continues but the road to health will be a long one. Downside risks, both old and new, are increasing. Our world forecast is 4.3% growth for 2011, and 4.5% for 2012, so down by 0.1% for 2011, and unchanged for 2012, relative to April. This figure hides very different performances for advanced economies on the one hand, and for emerging and developing economies on the other.
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