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Posts Tagged ‘employment policy’

An article by Paul Krugman (New York Times, 19/05/11) identifies the first signs of recovery in manufacturing production in the USA. These signs are manifested in a rise in manufacturing jobs and a reduction in the manufacturing trade deficit. The Regional Development team at the Reut Institute identified similar early signs in Barcelona.

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The CEO of the Ministry of Industry, Trade and Labor recently mentioned a dilemma which characterizes the Ministry’s work: “Does our will to encourage the economy fit in with our will to protect workers?” Even raising the question signifies a mindset that perceives a conflict between encouraging growth and the protection of workers’ rights. This [...]

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Merav Arlozorov recently presented new research by the Bank of Israel which examines the influence of the law for encouraging capital investment. According to the research, the grants that Israel gave to several factories in the periphery encouraged more capital investment but didn’t succeed in significantly enlarging the scope of employment. Arlozorov reports that a [...]

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In addition to focusing on the relative lack of participation of Arab women and Ultra Orthodox men in the work force, the 2008 Bank of Israel report also identifies an unusual pattern among Arab men that needs to be addressed.

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The economic crisis has led to calls for the government to encourage employers not to fire their workers. However, this policy may perpetuate non-competitive factories and industries at a high cost.

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The strike by “Pri Hagalil” workers and remarks such as “if the factory shuts down, I have no future” or “this factory is my life” reminded me of an important principle of labor market policy we learned from the World Bank’s Growth Report. The principle – protecting people, not jobs.

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