Mapping Marginality Hotspots: Geographical Targeting for Poverty Reduction

This mapping approach aims to make the marginalized and poor visible by identifying areas with difficult biophysical and socio-economic conditions. Mapping using different data sources and data types gives deeper insight into possible causal interlinkages and offers the opportunity for comprehensive analysis. The maps highlight areas where different dimensions of marginality overlap - the marginality hotspots - based on proxies for marginality dimensions representing different spheres of life. Furthermore, overlaying the marginality hotspots with the number of poor shows where most of the poor could be reached to help them to escape the spiral of poverty. Marginality hotspots can be found in particular in India and Nepal as well as in several countries in Central and Eastern Africa, such as Eritrea, Mozambique, Central African Republic, the Democratic Republic of Congo, Northern Sudan and large parts of Niger. Maps showing the overlap between marginality and poverty highlight that the largest number of marginalized poor are located in India and Bangladesh, as well as in Ethiopia, Southeastern Africa and some parts of Western Africa

Middle Class in Africa: Determinants and Consequences

This study complements the inclusive growth literature by examining the determinants and consequences of the middle class in a continent where economic growth has been relatively high. The empirical evidence is based on a sample of 33 African countries for a 2010 cross-sectional study. OLS, 2SLS, 3SLS and SUR estimation techniques are employed to regress a plethora of middle class indicators, notably, the: floating, middle-class with floating, middle-class without floating, lower-middle-income and upper-middle-income categories. Results can be classified into two main strands. First, results on determinants broadly show that GDP per capita and education positively affect all middle class dependent variables. However, we have seen a negative nexus for the effect of ethnic fragmentation, political stability in general and partially for economic vulnerability. Simple positive correlations have been observed for: the size of the informal sector, openness and democracy. Second, on the consequences, the middle class enables the accumulation of human and infrastructural capital, while its effect is null on political stability and democracy in the short-run but positive for governance and modernisation. Policy implications are discussed

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Earnings inequality declined rapidly in Argentina, Brazil and Chile during the 2000s. A reduction in the experience premium is a fundamental driver of declines in upper-tail (90/50) inequality, while a decline in the education premium is the primary determinant of the evolution of lower-tail (50/10) inequality. Relative labor supply is important for explaining changes in the skill premiums. Relative demand trends favored high-skilled workers during the 1990s, shifting in favor of low-skilled workers during the 2000s. Changes in the minimum wage, and more importantly, commodity-led terms of trade improvements are key factors behind these relative skill demand trends