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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
 

Doing Business Trading Across Borders and Logistics Performance Index: similar yet different

Valentina Saltane's picture


People who look at the Doing Business report’s Trading Across Borders indicator and the Logistics Performance Index (LPI) often wonder why one country can perform well on one of the rankings but not so well on the other although they both measure trade and logistics. In fact, earlier this year, the Doing Business team organized a workshop at the World Bank Global Knowledge and Research Hub in Kuala Lumpur to clarify the differences between the two datasets.

Let’s start off with a few definitions:

The Doing Business report is a World Bank Group flagship publication, which covers 11 areas of business regulations. Trading Across Borders is one of these areas. It looks specifically at the logistical processes of exporting and importing. Data is updated annually and the latest edition covers 190 economies. Doing Business collects data from local experts and measures performance as reported by domestic entrepreneurs, while taking into consideration factual laws and regulations.

The Logistics Performance Index is a benchmarking tool which focuses on trade logistics. It is created to help countries identify the challenges and opportunities they face as they relate to customs, border management, transport infrastructure, and logistics services. Updated biennially, the latest data and report cover 160 economies. Data is collected from global freight forwarders and express carriers who provide feedback on the logistical “friendliness” of the countries they operate.

How level is the playing field between countries in Latin America and the Caribbean?

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

In less than a generation the Latin America and the Caribbean (LAC) region has made great progress in expanding the basic public services that are necessary for children to succeed later in life. The skills, knowledge and health accumulated by individuals by the time they reach adulthood are essential to get jobs, accelerate economic mobility, and reduce inequality in the long-run. The progress observed in LAC ranges from increased access to healthcare and schools to running water and electricity. But progress has also been uneven, both across countries and for different types of basic services.

Today, the playing field in Latin America is most level in access to electricity, where we have seen gaps in coverage narrow the most. Figure 1 below shows how the typical performance in the region (the median) compares with the country in the region with the highest level of coverage (labeled “best in class”) in three basic services for children. The focus on children makes it possible to determine that any difference in access would be mostly due to circumstances out of their control. In the case of access to electricity the regional median has not only converged towards the best performing country but it has now reached a coverage of 99 percent.

What global opinion leaders think about climate change in three charts

Jing Guo's picture
Also available in: Français | العربية | Español

In early November, nearly 200 countries came together at the UN climate change conference (COP22) in Marrakech to reaffirm their commitment to the historic “Paris Agreement.” If the COP21 was about signing this agreement, this year’s conference is about the critical next step of turning commitment into action.

To track overall opinions of thought leaders across the globe, including views toward climate change before and after the landmark deal, the World Bank Group’s Country Opinion Survey program annually surveys nearly 10,000 key influencers working in government, parliament, private sector, civil society, media, and academia in more than 40 development countries. The results help shed light on the overall public opinion environment where efforts to operationalize the Agreement will likely take place.

The following charts provide a snapshot view of global opinion leaders’ (in developing countries) attitudes toward climate change.

Overall, survey data suggest that concern about climate change among opinion leaders worldwide has increased significantly in the past four years. While the percentage of respondents considering addressing climate change a top development priority is relatively lower than that of education, governance, and food security in many countries, data clearly show an upward trend in the perceived importance of combatting climate change since 2015.



 

Global Data Lab: a resource for subnational development indicators from household surveys

Jeroen Smits's picture

This is a guest blog written by Jeroen Smits of the Global Data Lab, an initiative hosted by the Nijmegen Center for Economics (NiCE) at Radboud University in the Netherlands.  

Disaggregation of indicators at the subnational level is one of the key elements to effectively monitor the Sustainable Development Goals (SDGs). At the same time, this is a great challenge, as in the case for many countries, only indicators at the national level are available.
 
This is particularly the case for poor countries, where administrative systems are less equipped and capable to generate reliable and representative information. Strengthening those systems is the preferred solution, but that takes time and does not produce the indicators for earlier years required for tracing developments over time.

The all-new Open Data website is here

Tim Herzog's picture
The time has come to bid a fond farewell to the open data website that has served us well for almost six years. Next week we will launch the most significant upgrade to the World Bank’s Open Data website since its initial debut in 2010. We first announced this upgrade when we launched the site as a public beta a few months ago.

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.
 

Headwinds for all

Oscar Calvo-González's picture
Also available in: Español | Portuguese
The ongoing economic slowdown has lowered growth across all segments of the income distribution in Latin America, leaving behind the much different story of the mid-2000s. Back then economic growth was not just high; it also benefited the poor more than the rest of the population. In fact, between 2006 and 2011, Latin America and the Caribbean had the highest growth rate in the world for the incomes of the poorest 40 percent of the population. Since then, however, growth rates have continued to decelerate.
 

5 ways to understand poverty data

Tariq Khokhar's picture
Also available in: العربية | 中文 | Français | Español
The World Bank has just updated the international poverty line from $1.25 to $1.90 per day. There’s a lot to read about both the rationale behind, and the implications of this revision. A good place to start is this blog by our colleagues in the research department and the associated technical paper explaining the data, methodology and results.

We’ve also produced a series of “understanding poverty” video explainers that go into poverty lines, poverty measurement, purchasing power parities (PPPs), why we're updating the international poverty line to $1.90/day and some highlights from the newly released data. You can watch all 5 videos in the playlist below:
 
 

 

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