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GTAP Resource #4503

"GIDD Sectoral Wage Bill Database by workers’ skill level"
by Osorio Rodarte, Israel and Marcio Cruz

Labor income is the most important component of household earnings and also a critical piece of information to link micro and macro analysis [Bourguignon et al., 2008]. However, comparable information across countries on wage bill disaggregated by sector and workers level of education attainment is scarce.

The GIDD Sectoral Wage Bill (GIDD-SWB) Database aims to fill this gap by providing more accurate information on how workers with different level of education are allocated among sectors and countries. Furthermore, this data can be used for modelling purposes within the Global Trade Analysis Project (GTAP) as an alternative to disaggregate labor payments by different level of skill.

This paper introduces GIDD-SWB providing further details on the procedures used to generate the dataset, descriptive statistics and an example of application within GTAP. GIDD-SWB has information on multiple indicators of labor income, including number of employees, average wages by different sector of activities and different level of school attainment for approximately 128 countries, disaggregated at 9 sectors using ISIC classification mapped with GTAP. This data is derived from a global set of household surveys (HS) harmonized and available on the World Bank International Income Distribution Database (I2D2).

The data provides important insights about sectoral skill intensity, which is critical to project structural changes in the long run. In addition, further understanding on the characteristics and differences of earnings among industries, regions and countries is important to explain income inequality. For example, Young [2013] used the Demographic and Health Surveys for 65 countries and found that the urban-rural gap accounts for 40% of mean country inequality and much of its cross-country variation. Therefore, shocks that lead to workers sectoral mobility (e.g. agriculture to non-agriculture activities) may have important distributional effects that should be t...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Version: 0.1
Created: (4/15/2014)
Updated: (4/16/2014)
Visits: 2,113
- Baseline development
- Demographics
- Economic analysis of poverty
- Education
- Labor market issues
- The GTAP Data Base and extensions
- Not Applicable

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