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Title page

Contents

Acknowledgments 7

Abbreviations 8

Executive summary 9

1. Overview 11

Building (early childhood) human capital 15

Utilizing human capital 16

Protecting human capital 18

2. Introduction 21

3. Building early childhood human capital 28

Prenatal years and maternal health and nutrition 28

Early childhood: 0-5 years 32

Within-country heterogeneity 36

Evidence-based multisectoral programs focused on early childhood 37

Policy recommendations for building human capital in early childhood 40

4. Utilizing human capital 45

Measures of human capital utilization 45

Dimensions associated with low utilization of human capital in Mauritania 49

Gender disparities and human capital utilization 57

Human capital utilization of older workers 60

Policies to improve the utilization of human capital in Mauritania 61

5. Assessing the strengths and gaps in protecting human capital 69

Human capital risks and policy responses 69

Existing approaches to protect human capital in Mauritania 74

Options to strengthen the protection of human capital in Mauritania 78

6. Conclusions 85

APPENDIX A. Utilization-Adjusted Human Capital Index 88

References 89

Table 1.1. Mauritania's HCI by sex 12

Table 1.2. Building, utilizing, and protecting human capital occurs across the life cycle 13

Table 1.3. Key constraints and policy actions for building, utilizing, and protecting human capital 14

Table 2.1. Mauritania's HCI by sex 24

Table 3.1. Addressing key issues to building early childhood human capital in Mauritania 41

Table 4.1. Mauritania's per capita human capital wealth growth rate is negative (1995-2018) 47

Table 4.2. Human capital held by males and females in Mauritania, 1995 and 2018 47

Table 4.3. The employment rate is low, especially among women 50

Table 4.4. Public sector employment dominates, 2017 51

Table 4.5. Many Mauritanians have low levels of education, 2017 52

Table 4.6. NEET rates are high across levels of education 53

Table 4.7. Agriculture and services continue to drive employment 56

Table 4.8. The potential gain from achieving gender equity in human capital is large 61

Table 4.9. Suggested indicators to track outcomes along different dimensions of jobs 63

Table 4.10. Addressing key issues of human capital utilization in Mauritania 64

Table 5.1. Key risks for Mauritania's human capital accumulation and utilization 75

Table 6.1. Operationalizing the policy recommendations 87

Figure 1.1. Mauritania's HCI is below its peers 12

Figure 1.2. Mauritania scores lower on the human capital components than neighbors, structural peers, or aspirational peers 12

Figure 1.3. Building early childhood human capital is a multisectoral policy issue 16

Figure 1.4. Mauritania became a lower-middle-income country despite a reduction in human capital wealth 17

Figure 1.5. Mauritian households, regardless of location, are affected mostly by agropastoral and climate shocks 18

Figure 2.1. Human capital strongly correlates with GDP per capita 21

Figure 2.2. Mauritania's HCI is below its peers 23

Figure 2.3. Mauritania scores lower on the human capital components than neighbors, structural peers, or aspirational peers 24

Figure 2.4. Population pyramid in 2021 24

Figure 3.1. The return to a unit dollar invested in human capital is highest in the early years 29

Figure 3.2. The Nurturing Care Framework 29

Figure 3.3. Building early childhood human capital is a multisectoral policy issue 30

Figure 3.4. Early childhood policy issues in Mauritania 32

Figure 4.1. Mauritania's human capital wealth has declined over the last 20 years (1998-2018) 46

Figure 4.2. Mauritania became a lower-middle-income country despite a reduction in human capital wealth 47

Figure 4.3. Mauritania is among countries with the worst utilization of human capital 49

Figure 4.4. Penalty for underutilization of human capital versus the level of HCI 49

Figure 4.5. Employment peaks in middle age and declines quickly thereafter 50

Figure 4.6. Youth struggle with the school-to-work transition 53

Figure 4.7. Mauritania has the second highest NEET rate for youth 15-24 in Sub-Saharan Africa 53

Figure 4.8. Returns accrue only beyond primary education 55

Figure 4.9. Poverty rate by employment/activity status of head of household 56

Figure 4.10. Women's better employment rate is correlated with income per capita 58

Figure 5.1. Mauritian households, regardless of location, are affected mostly by agropastoral and climate shocks 71

Boxes

Box 2.1. The Human Capital Index 23

Box 2.2. Best practice examples of a whole-of-government approach to human capital 27

Box 4.1. Experiences with employment subsidies for vulnerable populations: lessons from Jordan 66

Box 4.2. Approaches to estimate the potential of green jobs 67

Box 5.1. Coordinating the response to shocks 78