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Romania - Functional Review : Labor and Social Protection Sector, Final Report, Volume 2The Government of Romania (GOR), in
 agreement with the European Commission (EC), requested
 functional reviews of the Romanian public administration
 through an independent advisory service with the World Bank.
 The general objective of this advisory service is to review
 the current situation of the Labor and Social Protection
 (L&SP) sector, assess its functioning and develop an
 action plan that the GOR can use over the short- to
 medium-term to strengthen its effectiveness in the public
 administration. In meeting this objective, the World Bank
 examined: (i) whether the policy goals and objectives of the
 Ministry of Labor and Social Protection (MoLFSP) and its
 agencies are clearly defined in measurable and achievable
 terms; (ii) whether the management systems, policies,
 staffing, and organizational structure are appropriate for
 them to meet their objectives; and (iii) whether factors
 external to the institutions that may impede their ability
 to meet their objectives. The report is organized into two
 volumes. Volume One summarizes the main findings and
 messages, presents priorities for reform, and suggests an
 action plan to carry out these priority reforms. Volume Two
 provides chapters with the background diagnostics,
 assessment and findings in depth, covering: Main Sector
 Features and Institutional Mapping; Ministry of Labor Family
 and Social Protection; Labor Market; Pensions; Social
 Assistance (Cash Transfers); Social Assistance Services;
 Information Management (cross-cutting)
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Ghana - Job Creation and Skills Development : Main ReportAccording to Government, Ghana is facing
 many challenges in the area of skill development and job
 creation. The Government is particularly concerned with: (i)
 unemployment among the youth (6.1 percent in 2005 for 15-24
 years old), which has been attributable to the rapid
 population growth rate of the youth, the rapid urbanization
 rate, the quality of labor supply, and low labor absorption
 rate of the economy; and (ii) the external efficiency of the
 education training system and its ability to supply the
 skills demanded by a diversified and competitive economy.
 Moreover, other related concerns include: channeling
 economic growth toward creating jobs, including 'good
 jobs'; better understanding the functioning of the
 informal sector; explaining the mismatch between skills
 development and jobs; improving labor market indicators;
 monitoring and evaluating employment programs'
 outcomes; reviewing the role of labor market regulations in
 job creation; and reforming technical vocational education
 and training (TVET) systems. The key objective of
 Ghana's development policy is to accelerate economic
 growth and put the creation of new and better jobs at the
 center of the Government agenda. In this context, and
 complementing the recent Country Economic Memorandum (CEM)
 and earlier Bank's work on youth employment, this
 report addresses labor market challenges that Ghana is
 facing, particularly as it strives for middle income status
 by 2015. This report: (a) briefly reviews the determinants
 of labor demand; (b) analyzes labor market outcomes based on
 recent survey data; (c) reviews the role of labor policies,
 institutions and programs; and (d) examines education and
 skills development policies and their links to labor market outcomes.
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Reforming Severance Pay : An
 International PerspectiveThroughout the developed and developing
 world there is growing demand for policies that would
 facilitate access to jobs by the most vulnerable, improve
 their earnings, and reduce their dependency on public
 support. As a result, governments are increasingly focused
 on removing obstacles faced by employers to create jobs and
 on instilling incentives for individuals to re-enter the
 labor market or to move toward more productive employment
 possibilities. Severance pay a program compensating formal
 workers for dismissal by employers or with an end-of-service
 benefit is often blamed for distorting employer hiring and
 firing decisions. Together with restrictive labor market
 regulations and other formal labor market features, this
 program is held responsible for excessive job protection
 with a negative impact on labor market outcomes, in
 particular affecting the most vulnerable. Despite this
 strong negative assessment among many labor market
 economists, surprisingly little is known about this program
 that exists in most countries around the world as a legally
 mandated benefit. This lack of knowledge may derive from the
 special 'positioning' of the program between labor
 code and social insurance; its origins were in the first
 policy domain, but its objectives for key programs were
 replicated in the second domain in particular unemployment
 and retirement benefits. This is the first-ever book to shed
 light on this program in a comprehensive manner its
 historical origins, its rationale, and its characteristics
 across the world. It reviews the soundness of the empirical
 accusation, assesses recent country reforms, and offers
 policy reform alternatives and policy guidance. The policy
 directions include folding severance pay into existing
 social insurance programs, where they exist, and to make
 severance pay contractual between market partners as a way
 to enhance efficiency in a knowledge-based economy. Folding
 severance pay into employment benefits may also be an
 opportunity to move away from unemployment insurance, which
 is fraught by moral hazard, toward a promising
 'hybrid' system of unemployment insurance savings
 accounts supplemented by social pooling.