Enterprises, Workers, and Skills in Urban Timor-Leste
Like many low-income countries, Timor-Leste faces challenges in providing employment for and increasing the skills of its labor force-challenges made more acute by high fertility rates, a very young population, and the capacity constraints of a new...
Main Authors: | , |
---|---|
Language: | English |
Published: |
World Bank, Washington, DC
2012
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2007/03/7475041/enterprises-workers-skills-urban-timor-leste http://hdl.handle.net/10986/7231 |
Summary: | Like many low-income countries,
Timor-Leste faces challenges in providing employment for and
increasing the skills of its labor force-challenges made
more acute by high fertility rates, a very young population,
and the capacity constraints of a new nation. However, there
is limited information for policymakers to formulate
appropriate policies. The paper presents findings of the
first urban enterprise survey in independent Timor-Leste. It
explores several aspects of the Timorese urban labor market,
including the profile of formal and informal enterprises,
their behavior in terms of employment and wage-setting
practices, and constraints on firm growth. It also presents
findings on the skills and training needs of urban
employers, and constraints faced in overcoming skills
shortages. It finds a highly informal urban enterprise
scene, where even "formal" enterprises are largely
micro-enterprises. While there has been considerable action
in terms of new firm creation since independence, there is
already surprisingly low job creation or destruction. This
is driven by a number of constraints inside and outside the
labor market. With respect to wages, the impacts of the
informal minimum wage policy inherited from the interim
international administration suggest the need for caution in
future wage policy development. While employers identify
many skills gaps, basic literacy, numeracy, and language
skill needs dominate, and employers appear to value short
courses and less formal modes of skills training to address
their needs. The paper concludes with suggestions for
addressing the key constraints identified. |
---|