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The most important asset people have is their human capital. For most, the value of this asset is realized in the labor market. This book examines the changing world of work in a dynamic region, and proposes how policies can support inclusive growth by creating a more enabling environment for work. Work in East Asia and the Pacific is the channel of three development transformations, outlined in the World Development Report 2013 on jobs: greater productivity, rising living standards, and increased social cohesion. However, social cohesion is lagging, linked to widespread informal work in many East Asia and Pacific countries. Most East Asians live and work in countries where urbanization is well advanced, and where governments face the challenge of preventing informality from creating segmentation in the labor market and broader economy. In these countries, lagging social cohesion is leading to louder and more frequent calls for “jobs strategies" and greater intervention by the state. This report suggests a new, comprehensive approach governments can follow to address cleavages in the factor markets that impede competition, impair mobility, constrain opportunities, and limit the coverage of social protection. It argues that the policy objective should be to support the three transformations to sustain growth and achieve higher levels of development, before the onset of population aging.
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