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GTAP Resource #5401

"Modeling the poverty and distribution effects of human capital formation across countries: Using a new database on labor skills and wages"
by Cruz, Marcio, Delfin S Go and Israel Osorio Rodarte


Abstract
Modeling the poverty and distribution consequences of human capital formation requires consistent treatment of labor and its skill composition between the economic model and the household data. This paper describes the innovations made to Global Income Distribution Dynamics (GIDD), a macro-micro simulation framework at the World Bank to capture the global poverty and distribution effects of long-term demographic and education trends across countries. First, it introduces a new database about the skill composition of labor based on education level as well as demographic characteristics of individuals, derived from harmonized household surveys of 104 countries. It is constructed to provide a consistent definition of labor skills, wages and skill premia to disaggregate the value added of labor in social accounting matrices from national accounts. In so doing, it summarized useful stylized facts for economic modeling and provided a means to access he resulting data. Second, it explains how the new data is incorporated into a global microsimulation model like the GIDD, possibly as a template for parallel economic modeling. And third, it summarizes two cases among the many applications of the framework already made – the first case deals with the global poverty and inequality implications of the coming wave of educated workers from the developing countries, and the second case examines the future threats of the antimicrobial resistance.


Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Not published
By/In:
Date: 2017
Version:
Created: Osorio Rodarte, I. (4/17/2017)
Updated: Batta, G. (6/5/2017)
Visits: 400
- Demographics
- Economic analysis of poverty
- Other data bases and data issues


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  File format GTAP Resource 5401  (1.2 MB)   Replicated: 0 time(s)


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