Demographic Transition and the Labor Market in Sri Lanka

Sri Lanka's demographic transition has significantly shaped the age distribution of the labor force and created a large working age population (World Bank 2008). Changing cohort sizes of young and old workers not only affect their own labor market outcomes (job quality, earnings), but also potentially affect growth prospects in the economy. Recovering from a 30-year conflict in the North and the East, Sri Lanka aims to accelerate growth in the medium term by substantially increasing investments. What will be the role of the labor market in delivering this growth? The service sector is expanding and accounts for nearly 60 percent of the Growth Domestic Product (GDP) and almost 40 percent of employment. However, only 56 percent of the working age population is employed, a result of low participation and high unemployment rates among women and youth. Any growth strategy will have to bring in more working age people, particularly women, into economic activity. The paper is organized as follows. The two sections that follow present an overview of the supply and demand side of the labor market. The next section discusses the ways in which the demographic transition could shape the labor market, particularly in terms of unemployment and earnings. This discussion is followed by three sections examining labor force participation and unemployment, job type, and earnings respectively. The last section concludes with some policy recommendations.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2012-10
Subjects:	ADOLESCENT GIRLS, AGE DISTRIBUTION, AGE GROUP, AGE GROUPS, AGGREGATE DEMAND, ARMED FORCES, BABIES, BABY, BABY BOOM, BARGAINING INSTITUTIONS, BASIC WORKER RIGHTS, BRAIN DRAIN, CAPITAL INVESTMENT, CHILD CARE, CHILD SURVIVAL, CHILDBEARING, CLERKS, COLLECTIVE BARGAINING, CROSS-SECTIONAL DATA, DEMOGRAPHIC CHANGES, DEMOGRAPHIC PRESSURES, DEMOGRAPHIC PROJECTIONS, DEMOGRAPHIC TRANSITION, DEMOGRAPHIC TRENDS, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DISCRIMINATION AGAINST WOMEN, DOWNWARD PRESSURE, EARNINGS REGRESSION, EARNINGS REGRESSIONS, ECONOMIC CONSEQUENCES OF POPULATION, ECONOMIC GROWTH, ECONOMIC THEORY, EDUCATED MOTHERS, ELDERLY, EMPLOYEE, EMPLOYMENT GROWTH, EMPLOYMENT INCREASE, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT OPPORTUNITIES FOR WOMEN, EMPLOYMENT POLICY, EMPLOYMENT SERVICES, EMPLOYMENT SHARE, EQUILIBRIUM WAGES, ETHNIC GROUP, FAMILY SIZE, FAMILY SUPPORT, FAMILY WORK, FEMALE EDUCATION, FEMALE EMPLOYMENT, FEMALE LABOR, FEMALE LABOR FORCE, FEMALE LABOR FORCE PARTICIPATION, FEMALE WORK, FERTILITY, FERTILITY DECLINE, FERTILITY RATES, FEWER CHILDREN, FIRM SIZE, FIRST UNEMPLOYMENT SPELL, GENDER, GENDER COMPOSITION, GENDER EQUALITY, GENDER GAP, GENDER PARITY, GENDER WAGE GAPS, GOVERNMENT AGENCIES, HEALTH SERVICES, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT RATE, HIGH UNEMPLOYMENT RATES, HIV, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD RESPONSIBILITIES, HOUSEHOLD SURVEY, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN RESOURCES, IMPACT OF EDUCATION, IMPACT OF POPULATION, INCOME, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INFORMAL SECTOR EMPLOYMENT, INFORMAL SECTOR WORKERS, JOB CREATION, JOB LOSS, JOB SEARCH, JOB SEARCH ASSISTANCE, JOB SECURITY, JOB SEEKERS, JOB STATUS, JOB VACANCIES, JOBS, LABOR COSTS, LABOR DEMAND, LABOR ECONOMICS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKET CONDITIONS, LABOR MARKET DISCRIMINATION, LABOR MARKET EXPERIENCE, LABOR MARKET FLEXIBILITY, LABOR MARKET OUTCOME, LABOR MARKET OUTCOMES, LABOR MARKET REGULATIONS, LABOR MARKETS, LABOR REGULATIONS, LABOR SUPPLY, LABORERS, LABOUR, LABOUR FORCE, LABOUR FORCE PARTICIPATION, LABOUR MARKETS, LABOUR ORGANIZATION, LAM, LEGAL STATUS, LEGISLATORS, LEVELS OF EDUCATION, LOCAL LABOR MARKET, LOW FERTILITY, MARITAL STATUS, MARRIED WOMEN, MIGRANTS, MINIMUM WAGES, MORTALITY, NUMBER OF PEOPLE, NUMBER OF WORKERS, NURSES, OCCUPATIONS, OLDER ADULTS, OLDER WORKERS, OPPORTUNITIES FOR WOMEN, PAID WORKERS, PARTICIPATION BY WOMEN, PERMANENT EMPLOYMENT, PERSONNEL, POLICY IMPLICATIONS, POLITICAL ECONOMY, POPULATION CENSUSES, POPULATION CHANGE, POPULATION GROWTH, PRELIMINARY RESULTS, PREVIOUS STUDIES, PRIVATE COMPANIES, PRIVATE SECTOR, PRIVATE SECTOR JOBS, PRIVATE SECTOR WORKERS, PROBIT REGRESSION, PROGRESS, PROMOTING GENDER EQUITY, PUBLIC EMPLOYMENT, PUBLIC POLICY, PUBLIC SECTOR EMPLOYEE, PUBLIC SECTOR EMPLOYEES, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR JOB, PUBLIC SECTOR JOBS, REGULAR WORKERS, REMITTANCES, RESPECT, RETAIL TRADE, RETIREMENT, SALARIED WORKERS, SECONDARY LEVELS OF EDUCATION, SECRETARIES, SECURITY SITUATION, SERVICE SECTOR, SERVICE SECTORS, SEX, SKILLED WORKERS, TEMPORARY WORK, TEMPORARY WORKERS, TERTIARY EDUCATION, TERTIARY LEVEL, TOTAL EMPLOYMENT, TOTAL LABOR FORCE, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT AMONG WOMEN, UNEMPLOYMENT DURATION, UNEMPLOYMENT PROBLEM, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNEMPLOYMENT SPELLS, UNIVERSITY EDUCATION, UNPAID FAMILY WORKERS, UNPAID WORKERS, USAID, VOCATIONAL TRAINING, WAGE DATA, WAGE DIFFERENTIAL, WAGE GAP, WAGE PREMIUM, WAGE PREMIUMS, WAGE SUBSIDIES, WAR, WATER SUPPLY, WDR, WOMAN, WORK FORCE, WORKER, WORKERS, WORKING, YOUNG CHILDREN, YOUNG MEN, YOUNG PEOPLE, YOUNG WOMEN, YOUNG WORKERS, YOUTH EMPLOYMENT, YOUTH LABOR, YOUTH UNEMPLOYMENT, YOUTH UNEMPLOYMENT RATE, YOUTH UNEMPLOYMENT RATES,
Online Access:	http://documents.worldbank.org/curated/en/2012/10/17036786/demographic-transition-labor-market-sri-lanka https://hdl.handle.net/10986/17989
Tags:	Add Tag No Tags, Be the first to tag this record!