Overview

Abstract

Argues that emerging economies reside in the middle of a technological shift currently bringing change to the nature of work, and that whatever the future holds, investment in human capital remains a no-regrets policy that prepares people for the challenges ahead. In the context of emerging economies, several stylized facts prove accurate including (1) the blurring of the boundaries of the firm; (2) the reshaping of the skills needed for work; (3) the fear of robots replacing workers; (4) the large number of workers remaining in low-productivity jobs; and (5) the effects technology, particularly social media, has on the perception of rising inequality in many countries. Governments can help by investing in disadvantaged groups and early childhood education to develop high-order cognitive and sociobehavioral skills in addition to foundational skills. They can also enhance social protection and create fiscal space for public financing of human capital development and social protection.