labour income inequality : evidence from italy ”, bank of italy occasional papers series, n. 606, 2021. this important topic. his contributions to the literature on the impact of technology on the labour market and on inequality have set milestones in these fields. while new technologies can affect welfare and inequality, requiring a reaction from labour market institutions and policies, the latter can in turn have an important influence on the adoption of technologies. a few papers in the programme discuss this interplay. one shows that improving the quality of worker - job matching, including through well - designed institutions and labour law reforms, is crucial to unlocking the economic gains of innovation. 2 another paper shows that unions play an important role in technology adoption : their actions reduce the negative effects of technology on workers and can even improve the quality of the technology in which firms invest3 ( today ’ s opening paper, also about unions, confirms that they negotiate over different job characteristics, not just about money ). 4 another paper to be presented this morning shows that digital technology can also improve occupational training and skills acquisition, and ultimately promote the adoption of new technology itself. 5 digitalization has also enabled the rapid and massive shift to remote working triggered by the pandemic. employees benefit from reduced commuting time and costs, more flexible daily schedules, and a better work - life balance. firms can reap significant cost savings from reduced need for office space, and can achieve better job - matches by potentially recruiting from a larger pool of candidates, as physical proximity is no longer indispensable. but there could be a dark side of these visible benefits : in the medium to long term, the changes in interactions patterns among colleagues brought about by remote working could have unwanted and hard - to - identify effects on productivity, innovation and even mental well - being. working from home also poses challenges for firms in terms of adapting management practices and incentivising employees. 6 research on these effects is hampered by the relative novelty of the phenomenon, but it will become very relevant to private and public decision - makers as soon as availability of good quality data makes it possible. let me now turn to the issue of rising inequalities. the pandemic has exacerbated deep - seated inequalities – in income, access to health care, job security, and opportunities. unequal societies tend to be more prone to economic inefficiencies and political instability, and the two are likely to reinforce each other.

ignazio visco : creating job, eradicating poverty and achieving sustainable prosperity statement by mr ignazio visco, governor of the bank of italy, on behalf of the constituency representing albania, greece, italy, malta, portugal, san marino and timor - leste, to the development committee, tokyo, 13 october 2012. * 1. * * creating jobs for development : a challenge for all countries according to the ilo ’ s latest estimates for 2012, the global number of unemployed is 200 million, about 30 million more than in 2007. at the same time, the share of the working age population with a job declined to an estimated 60. 3 per cent in 2012 from 61. 2 per cent in 2007. this scenario is projected to remain mostly unchanged in the coming years and can even turn out to be optimistic should some of the downward risks materialize. thus, the world development report ( wdr ) 2013 on jobs recently published and its companion paper “ creating jobs for development : policy directions from the 2013 world development report on jobs ” are timely in addressing one of the most pressing problems for many policy makers around the world. they also offer an opportunity to refocus the attention of the bank on its original mandate of eradicating poverty and boosting prosperity. jobs and especially good jobs, are the main avenue to achieve both goals. as the wdr 2013 states, it is for the private sector to create economically and socially sustainable jobs, and for the government to provide a stable macroeconomic environment, an investment friendly business climate, a solid rule of law and a balanced labor market regulation. policies and interventions will need to be tailored to each country ’ s initial conditions, based on the diagnosis of the constraints to job creation. 2. the knowledge bank : implications for the business model the strategy that aims at eradicating absolute poverty in poor countries and achieving sustainable and inclusive prosperity in middle income countries deserves support. financial resources need to be directed with priority towards countries that do not have access to the market at a reasonable cost. on the contrary, about 50 per cent of the overall ibrd exposure is currently to countries with per capita income above 2, 900 us dollars, and 30 per cent is to countries that can borrow from the market at a spread of no more than 150 basis points over the corresponding us treasury. redirecting financial resources to the least developed countries cannot imply that the wbg ceases to serve middle income countries. the wbg needs to define a