rafmacalaba/datause-encoder-data huggingface dataset:
# **V. “Readiness”, the Skills Development Process and Policy for Developing the Skills Employers Demand**

Employer voices tell us that a broad range of skills are necessary for the labor market, but to draw conclusions that would guide policy to better prepare workers for the labor market, we must first turn to the developmental psychology and education literature to understand the skills development process.

Labor-market relevant skills are taught throughout the life-cycle by age-relevant actors. One reason for the life-cycle approach is that neurological, biological, psychological and social processes dictate that certain skills are not learn-able before certain ages (Guerra and Modecki forthcoming). For example, a toddler is me-centered and is not biologically or socially able to feel genuine empathy that a primary school student displays. It is not for a lack of being taught to be empathetic but instead the toddler is not neurologically or psychologically “ready” and a toddlers’ social context – where she is still very much driven by parental guidance – is not conducive to practicing, and thereby developing, this skill. A second reason for the life-cycle approach is that certain skills are the foundation for other skills (Cunha et al. 2005). Basic math – which is developmentally appropriate for primary school – is a foundation for secondary-school introduction to physics just as impulse control is a foundation for the higher-order cognitive skill of problem solving. Heckman (2008) argues that most of the gaps at age 18 that help to explain gaps in adult outcomes are already present at age five, and that disadvantaged children are at a particular risk of falling behind early and not being able to catch-up as the life-cycle process moves on without them.

Table 9 presents a rough representation of the appropriate period of the life-cycle to acquire skills that the employer surveys point to. In the early years, the most basic cognitive skills such as numeracy and literacy can be acquired. Also, some of the most important foundational socio-emotional skills are developed in this period, such as delayed gratification, impulse control, and working with others. During childhood, the learning really takes off with the ability to rapidly acquire basic cognitive skills – with some higher-order cognitive emerging, such as problem solving – and the child is in a context to develop more complex socio-emotional skills related to engaging and negotiating with others. During adolescence, the foundations should already be built, the brain is neurologically and psychologically ready, and the social context is appropriate to go full force on higher-order cognitive development and complex socio-emotional development while still acquiring basic cognitive skills. Once reaching early adulthood (18-26), technical skills can be built on the foundation of the basic cognitive, 26
The global changes in land use for the reference run are summarized in Figure 4, using outputs from the IMAGE model (Eickhout et al., 2006). While expansion in pastureland and in crop land is not enormous, and is accompanied by increases in grazing intensity and technological improvements, total land use for humans still increases to 2050 by 4 million km<sup>2</sup> . The increasing demand for bioenergy is a key driver of this change. IMAGE model results identify several regional changes to 2050, including relatively little room in Latin America (currently one of the most important energy crop growing regions) for much energy crop expansion to 2050, given the substantial expansion of animal and crop agriculture that is projected for the region. This scenario may change substantially once secondgeneration biofuel technologies are introduced in the future.

Figure 4. Land-use change (food crops, pastureland, and biofuel crops) globally, 2000 to 2050, reference run. Rosegrant et al. (2009), IMAGE model.

<!-- Start of picture text --> food crops grass & fodder biofuel crops<br>60<br>50<br>40<br>30<br>20<br>10<br>0<br>2000 2010 2020 2030 2040 2050<br>2<br>in Mkm<br><!-- End of picture text --> In addition to the implications for livestock systems, the considerable increases in demand for food will have profound implications for social equity, the environment, and public health. Increased market activity and increased exports of livestock and livestock products could increase food safety and animal disease transmission risks. Declining resource availability 21
Nanchang, Zhenzhou, Wuhan, and Changsha; (iv) _Southwest_ : Nanning, Guiyang, Chongqing, and Kunming; and (v) _Northwest_ : Xi’an and Langzhou. Figure 1 shows a map of the different cities and the regions from where the firms were sampled.<sup>11</sup> The survey questionnaire has two main sections. The first section consists of questions on general information about the firm, its relations with clients and suppliers, its relations with the government, and qualitative questions asking for the manager’s opinion on the business environment. The second section is based on interviews with the firm’s accountant and personnel manager, asking for balance sheet information and other quantitative information on employee training, schooling, and wages. While most of the qualitative questions pertain only to the year 2002, a short panel from 1999 to 2002 is available for the quantitative questions.

The survey allows us to identify firms on the basis of their registration status as corporations, state owned companies, cooperatives and other legal structures. In addition, each firm also provides a detailed breakdown of its ownership structure into domestic versus foreign owners as well as a more disaggregated breakdown into percentage owned by individuals, managers, institutional investors, firms and banks.

# **_3.1. Financing Patterns: China Compared to Other Countries._**

Enterprise managers in the survey were asked: “Please identify the contribution of each of the following sources of financing for your establishment’s new investments (i.e. new land, buildings, machinery and equipment).” The sources are internal financial

> 11 In an earlier phase of the survey in 2001, firms were sampled from following 5 Chinese cities: Beijing, Tianjin, Shanghai, Guangzhou, and Chengdu. We do not use these cities in our paper since the time period over which the information is available is different (1998-2000 as opposed to 2000-2002). In addition, firms in the first phase survey were not asked detailed information about their financing patterns.

11
WPS4171

# Specification of Investment Functions in Sub-Saharan Africa<sup>∗</sup>

Nihal Bayraktar Penn State University and World Bank Hippolyte Fofack World Bank

**Abstract:** It is a well-known fact that one of the most important determinants of growth is private investment. However, in the developing country context of widespread poverty, the effects of initial conditions on the process of capital accumulation have seldom been investigated. This paper highlights heterogeneity in the process of capital accumulation across different countries in SubSaharan Africa, and derives a formal specification of investment functions in the primary, industry and service sectors in the region, using a variation of the combined Tobin's Q Theory and the neoclassical models of investment. The results highlight a more rapid accumulation of capital in the relatively high income sub-panel and a widening public-private capital accumulation gap. A functional specification points to the significance of aggregate profitability shocks, the financing cost of investment and public capital stock in estimating the growth rate of private capital accumulation. These results are supported empirically, as highlighted by the relatively small absolute deviation between actual and predicted value distributions.

_Keywords: investment, investment uncertainty, profitability shocks, public-private capital accumulation gap._ JEL _Classification Number_ : E22, O11, O55

## World Bank Policy Research Working Paper 4171, March 2007

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

> ∗ This paper benefited from discussions and presentations at various seminars. The authors are particularly grateful to Ibrahim Elbadawi, Raj Nallari, Benno Ndulu, and Etienne Yehoue for their helpful comments and would like to thank seminar participants in a number of universities and conferences for their suggestions.
because of nationalization.<sup>19</sup> To guarantee that the results were not confounded by access to the labor market and other services by these Colombians, the sample was stratified to exclude families with a Colombian citizen 10 years of age or older, and with a member who held PEP from a different wave.

The structure of the survey is explained below:

1. **Screening Module:** the screening was designed to be done in a first call to determine the family’s eligibility for the survey. The screening and the survey were to be answered by any adult in the nuclear family of the person who was originally contacted. The person who answered the survey became the main respondent and would be the only one to provide information for themselves. In turn, they had to answer the survey, from a third-person perspective, for all other family members.

In the screening, the main respondent was asked for their age, place of birth, Venezuelan ID number, current city of residence, whether they had a Venezuelan passport, and if they had registered in the RAMV census in 2018. If the contact came from the sampling frame of irregular migrants, they were asked if they had PEP and for the date of their arrival in Colombia. For the census sample, this information was available. Only families whose main respondent arrived in Colombia from January 2017 to December 2018 were eligible.

2. **Household Roster Module:** the main had to answer respondent sociodemographic, educational, and PEP-related questions for every member of the nuclear family:

- _Sociodemographic_ : age, relation to household head, citizenship (Colombian and/or Venezuelan) and proof of citizenship, gender, civil status, date of arrival in Colombia, date when they became part of the family, and cities of birth and residence in Venezuela.

- _Education_ : maximum level of education before migration, current level of education and enrollment, degree validation in Colombia, reasons why their degree is invalid, and whether they have lost a job because the degree is invalid in Colombia.

- _PEP_ : whether they have PEP, date of PEP issue, reason why they do not have PEP, perceived benefits of having PEP, renewal information on PEP (the PEP had to be renewed every two years), and whether they registered in the RAMV census. They were also asked about last week’s and last month’s income, healthcare

- regime, and expected length of stay in Colombia.

3. **Labor Module:** the main respondent and a second household member of working age 19In the 1980s and 1990s, large numbers of Colombians migrated to Venezuela to escape the socioeconomic crisis, conflict, and drug-related violence. Many of them have since returned to Colombia. Although they too could be considered forced migrants, they still hold Colombian nationality and thus can access the labor market and public services without PEP.

58
T he largest component of the school aid program, the "Comprehensive Operating Aid," accounted for about 56 percent of total educational aids from the state to localities in fiscal year 1995-6. The formula for calculating this aid is as follows: A district's comprehensive operating aid is determined by first calculating its "formula aid" and then comparing it with the minimum "flat grant" guarantee.

According to Education Law, Section 3602, Subdivision 12, each district receives the greater of: (i) "Formula Operating Aid" (ii) US$400 X selected TWPU (Flat Grant Provision) wvhere TWPU = Total Aidable Pupil Units Formula Operating Aid = ($3,900 + Ceiling Adjustment ) x Operating Aid Ratio x Selected TAPU for payment Operating Aid Ratio = The highest of the following but not less than zero nor more than 0.90:

1.35 -(combined Wealth Ratio x 1.50)

1.00 - (combined Wealth Ratio x 0.64)

0.80 - (combined Wealth Ratio x 0.39) 0.51 - (combined Wealth Ratio x 0.22)

# Combined Wealth Ratio = (0.5 x Full Value Wealth Ratio)

+ (0.5 x Income Wealth Ratio) Full Value Wealth Ratio =

# 1993 Full Value/ 1994-5 TWPU

State Average Full Value/TWPU ($261,300) Income Wealth Ratio =

# District 1993 Adjusted Gross Income/1994-5 TWPU

State Average Adjusted Gross Income/TWPU ($82,800) 65
rural areas and with no formal education face more obstacles in regard to obtaining diagnostic services.

# **Drug Availability and Quality**

In Colombia, the regulatory framework for medicines for human use is not fully developed. The processes of price-setting and reimbursement are not regulated (i.e., the Government does not fix the price of drugs). There are no measures to control drug offering (no reference pricing systems, negative or positive drug lists, etc.), or to promote the rational use of drugs (measures on drug prescriptions, incentives to generic drug uptake, etc.)—and the pharmaceutical distribution processes are complex.

Regarding the availability of drugs, the Health Regulation Commission ( _Comisión de Regulación en Salud_ , CRES) has established two specific lists of medicines to which people have access, depending on their insurance status:

- A list of drug products for persons who are affiliated with the contributory regime and for persons who are younger than 18 and are affiliated with the subsidized regime. The doctor of the IPS is required to choose from this list when making prescriptions, and the drugs have to meet the characteristics described in the POS.

- A second list of drug products for persons who are 18 or older and are affiliated with the subsidized regime. The POS of the subsidized regime describes the conditions, cases and treatment uses of the drugs authorized to be used.

In 2005, 72% of people with HIV/AIDS had access to ARV therapy. Goal 8 of Objective 3 of the PEN was to achieve an access rate of 86% by 2009, and of 96% by 2011.<sup>48</sup> However, as can be seen in table 6 below—which uses data from UNGASS 2010<sup>49</sup> —the rate of access to ARV therapy has gone down.

> 48 MPS (Enero 2008) Plan Nacional de Respuesta ante el VIH y Sida 2008-2011, Bogotá: MPS.

> 49 MPS (2011) Informe UNGASS – 2010. Seguimiento de la Declaración de Compromiso sobre el VIH/SIDA, Bogotá: MPS.

47
WPS3945 who had turned age 9 before the household’s fi rst migration episode are less likely to be enrolled in school as compared to children in their age cohort who were younger than age 9 when the fi rst migrant left the household. Similarly, the extent to which children engage in labor market activity is likely to be codetermined with schooling decisions and therefore also sensitive to the child’s age at migration.

Finally, still con fi ning attention to migrant households, we ask whether schooling and labor market outcomes vary signi fi cantly by female headship and whether we can discern any gender differentials in outcomes. Since female headship arises directly from the migration decision in our sample, we treat female headship as endogenous and use the same instrument set to identify selection into female headship.

The next section of the paper provides the context for our study and presents some preliminary evidence on gender differences in educational attainment and labor market activity of school age children. Section 3 presents the estimation and identi fi cation strategy. We test our main propositions in section 4. In 4.1 and 4.2 we use our instrumentation strategy to examine differences in educational attainment and labor market activity respectively. In 4.3, we restrict attention to migrant households and examine differences in educational attainment and labor among children in migrant households using our second strategy. In 4.4, we ask whether accounting for female headship among migrant households yields any further insights. Section 5 concludes.

# 2 Data and Context

## 2.1 Migration

More than one in four households in rural Pakistan have at least one migrant member. Migrants are typically adult males, who move temporarily to an international or domestic urban destination in search of employment leaving their families in the village.<sup>4</sup> Most maintain very close ties with their origin households and communities, returning frequently and sending substantial remittances.<sup>5</sup> This makes the context particularly useful for examining the impact of migration on outcomes in the sending community.

The study uses data from the Pakistan Rural Household Survey (PRHS) 2001-02, which collected detailed information on migration for each household member.<sup>6</sup> Complete

> 4 Close to 80% of migrants in our study report having undertaken migration in search of employment.

> 5 See Addleton (1984), Kazi (1989) and Arif (2004) for a review of migration patterns in Pakistan.

> 6 In the PRHS, all individuals who were away from the household at the time of the survey, were classi fi ed as households members, provided they were regarded as members of the household before they

4
Contractual Savings In Countries With A Small Financial Sector

|**Country**|**(US$.**<br>000000)|**(US$**<br>000000)|**GDP**<br>(US$)|Population<br>(000)|Openness<br>(X+MYIGDP|M2/GDP<br> <br>(%/)|
|---|---|---|---|---|---|---|
|Mozambique|1,013.01|4,524.69|261.56|17,299.00|49.23|22.39|
|Senegal|1,158.02|5,045.08|543.34|9,285.31|71.81|22.95|
|PapuaNewGuinea|1,160.11|3,696.25|785.66|4,704.62|86.84|31.39|
|Zimbabwe|1,226.72|6,462.45|542.89|11,903.70|90.90|18.98|
|Cameroon|1,371.07|9,327.75|634.95|14,690.50|49.34|14.70|
|Namibia|1,387.39|3,333.21|1,959.18|1,701.33|116.24|41.62|
|Haiti|1,445.06|4,745.99|608.23|7,803.00|40.10|30.45|
|Ghana|1,451.95|8,356.84|444.88|18,784.50|83.99|17.37|
|Nicaragua|1,510.68|2,462.86|500.71|4,918.75|122.28|61.34|
|Botswana|1,563.07|5,588.50|3,518.94|1,588.12|60.58|27.97|
|Tanzania|1,634.80|9,504.03|288.68|32,922.60|41.32|17.20|
|Barbados|1,667.87|2,632.43|9,871.13|266.68|105.80|63.36|
|Estonia|1,766.65|5,697.99|3,950.38|1,442.39|159.48|31.00|
|Latvia|1,773.97|6,506.79|2,676.48|2,431.10|104.33|27.26|
|Albania|2,127.02|4,044.76|1,198.36|3,375.23|41.26|52.59|
|Lithuania|2,243.00|11,029.97|2,981.88|3,699.00|90.05|20.34|
|Kazakhstan|2,291.44|20,542.02|1,376.17|14,927.00|85.31|11.15|
|Ethiopia|2,392.45|6,302.06|100.38|62,782.00|43.12|37.96|
|Yemen,Rep.|2,408.90|7,270.50|426.48|17,047.60|84.01|33.13|
|Nepal|2,412.51|5,458.67|233.43|23,384.20|52.98|44.20|
|Honduras|2,452.62|5,979.70|946.51|6,317.65|99.64|41.02|
|Paraguay|2,512.10|8,168.30|1,524.27|5,358.84|59.70|30.75|
|Coted'lvoire|2,721.67|11,111.17|714.75|15,545.50|81.84|24.49|
|Iceland|2,747.80|8,180.17|29,478.09|277.50|71.98|33.59|
|TrnidadandTobago|3,349.43|6,982.68|5,401.42|1,292.75|93.43|47.97|
|Jamaica|3,357.67|7,491.04|2,883.39|2,598.00|- 107.42-|44.82|
|Mauritius|3,448.51|4,543.82|3,869.06|1,174.40|132.67|75.89|
|Bulgana|3,765.03|13,097.57|1,595.71|8,208.00|96.03|28.75|
|Bolivia|4,106.27|8,593.43|1,055.96|8,138.00|44.44|47.78|
|Guatemala|4,217.05|19,381.44|1,747.90|11,088.40|46.38|21.76|
|Kenya|4,668.15|10,959.48|372.64|29,410.00|55.59|42.59|
|CostaRica|5,040.48|16,691.72|4,650.80|3,589.00|100.94|30.20|

Source: WBI Table 2 reports the correlation among these variables for 1999. For this year, the correlation between the size of the financial sector (M2) and the size of the economy (GDP), openness (imports and exports over GDP), wealth (per capita GDP), and population<sup>3</sup> was 0.94, - 0.14, 0.50, and 0.30, respectively. In other words, countries with small financial systems (M2) tend to have smaller and shallower financial markets, tend to be poorer, with smaller population, and more open4. 4 Small countries cannot fully exploit the economies of scale and scope in the provision of financial services. The reduced population limits the amount and quality of human 3 From the contractual savings point of view the variable "labor force" would be more appropriate. We assume that a very high and significant correlation exists between total population and labor force. 4Although the correlation is significantly different from zero at only 12%.

-4 -
The cost to a worker _θ_ , who was in _i_ during period _t_ , of moving from _i_ to _j_ = _i_ at the end of _t_ is, then: where _C ≥_ 0 is the deterministic component of mobility costs, common to all workers (such as retraining or relocation costs, or psychic costs of moving to a new occupation). The variable _ε_<sup>_i_</sup> _θ,t_<sup>_−εj_</sup> _θ,t_<sup>istheidiosyncraticcomponentofmovingcosts,whichcanbenegativeas</sup> easily as it can be positive. For example, a worker may be bored with her current job and long for a change in career ( _ε_<sup>_i_</sup> _θ,t_<sup>_−εj_</sup> _θ,t_<sup>_<_0), and a worker with a child in the final year of high</sup> school may have a non-pecuniary reason to stay in the current location rather than move, as might be necessary to change jobs ( _ε_<sup>_i_</sup> _θ,t_<sup>_−εj_</sup> _θ,t_<sup>_>_0).</sup> Further, we make the boundedness assumption: This ensures that the worker’s problem is meaningful; if it was violated, the worker could ensure infinite utility simply by choosing the sector with the higher value of _ε_ in each period.

Since what is important for workers’ decisions is the difference between _ε_<sup>_i_</sup> and _ε_<sup>_j_</sup> , we can simplify notation by defining: for a worker currently in sector _i_ , where _μ_<sup>_i_</sup> _θ,t_<sup>issymmetricallydistributedaroundmeanzero,</sup> with cdf _G_ ( _·_ ) and pdf _g_ ( _·_ ) derived from _F_ ( _·_ ) and _f_ ( _·_ ).

The transition equations governing the allocation of labor are: where _m_<sup>_ji_</sup> _t_<sup>denotesthefractionoflaborforcein</sup><sup>_j_atthebeginningof</sup><sup>_t_thatmovesto</sup><sup>_i_by</sup> the end of _t_ , or in other words, the gross flow from _j_ to _i_ .

The timing of events can be summarized thus: 9