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Non-tradable sector wages track high-skilled tradable sector wages

Oscar Calvo-González's picture
Also available in: Español | Portuguese

Recent data on hourly wages in Latin America and the Caribbean (LAC) reveal that Latin Americans working in the non-tradable sector (as in construction, transportation, hotels, or education) earn much more than workers in low-skill tradable sectors such as agriculture or low-tech manufacturing, and closer to high-skill workers in the tradable sector such as high-tech manufacturing or finance. Despite slight variations across countries, in 11 out of 17 countries studied, the difference between wages in low-skill tradable and non-tradable sectors has grown over the last ten years.[1] In most of these countries, hourly wages display a distinct trend: positive growth for high-skill tradable and non-tradable wages, and stagnating, or even declining for low-skill tradable wages.
 

Graph showing trends in non-tradable wages in Latin America

Source: World Bank's LAC Equity Lab
 

Children nearly twice more likely to be poor than adults in Latin America

Oscar Calvo-González's picture
Also available in: Español | Portuguese

Childhood poverty in Latin America has declined steadily but remains much higher than poverty among adults. In 2014 poverty among children stood at 36 percent, almost twice the rate for adults (19 percent - see briefing note). The chart below shows that poverty has decreased for both adults and children, but a closer look at the data reveals that childhood poverty has been declining at a slower pace than among adults.