Risk Sharing for a Diverse and Diversifying World of Work
by Truman Packard, Ugo Gentilini, Margaret Grosh, Phillip O'Keefe, Robert Palacios, David Robalino, and Indhira Santos
Series:Human Development Perspectives
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Publication year: 2019
Cdn: $55.00; US: $39.95
Due in September 2019.
This book, based on a white paper, focuses on the policy interventions made to help people manage risk, uncertainty, and the losses from events whose impacts are channeled primarily through the labor market. Its objectives are to scrutinize the relevance and effects of prevailing risk-sharing policies in low- and middle-income countries, take account of how global drivers of disruption shape and diversify how people work, and, in light of this diversity, propose alternative risk-sharing policies or ways to improve current policies for relevance and responsiveness to needs. The book also aims to map a reasonable transition path to an alternative policy approach that substantially extends protection to a greater portion of working people. It contributes to the broader global discussion on the changing nature of work and how policy can shape its implications for people's well-being.
Effective risk-sharing policies are foundational to building equity, resilience, and opportunity. Given failures of factor markets and the market for risk in particular, the rationale for policy intervention to augment the options that people have to manage shocks to their livelihoods is well-understood and accepted. By helping to prevent vulnerable people from falling into poverty—and people in the poorest households from falling deeper into poverty—effective risk-sharing interventions dramatically reduce poverty. Households and communities with access to effective risk-sharing instruments can better maintain and continue to invest in these vital assets. Foremost among them is their human capital. In doing so, they can reduce the likelihood that poverty and vulnerability will be transmitted from one generation to the next. Risk-sharing policies foster enterprise and development by ensuring that people can take appropriate risks required to grasp opportunities and secure their stake in a growing economy.