Labour and social protection institutions: Recent trends and impact on development

Abstract

This chapter examines the roles of labour policies and institutions from the perspective of development. It first defines these institutions and presents an overall analytical framework. The chapter then reviews recent trends in selected labour institutions. Finally, the chapter investigates how labour and social protection institutions can be made relevant to informal workers. Policy issues which emerge from concrete country examples are also discussed. Recent years have seen mixed developments in labour institutions. Institutions relating to minimum wages and social protection have been strengthened across a range of developing countries, but collective bargaining shows a declining tendency. Trends in employment protection are also mixed, with some sign of stricter regulation over fixed-term contracts. This is important because effective institutions can contribute to boosting development and hence job quality is also a development issue, which should be carefully considered in the post-2015 debate. Even in low-income countries there is oft en room for improving job quality which can then create a virtuous circle between incomes, decent work and development.