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© 2024, International Bank for Reconstruction and DevelopmentWorld Bank1818 H Street N.W.Washington D.C. 20433, United States of AmericaTelephone: (202) 473-1000Internet: www.worldbank.orgIn Spanish: www.bancomundial.orgEmail: feedback@worldbank.orgRights ReservedThis volume is a product of the staff of the International Bankfor Reconstruction and Development / The World Bank. Thefindings, interpretations, and conclusions expressed in thisvolume do not necessarily reflect the views of the ExecutiveDirectors of the World Bank or the governments they represent.The World Bank does not guarantee the accuracy of the dataincluded in this publication.Rights and Permissions.The International Bank for Reconstruction and Development /The World Bank encourages the dissemination of its work andwill normally grant permission to reproduce portions of thiswork promptly, provided the sources are acknowledged.Concept and Cover DesignLuis Chumpitazi Llave - LingoInterior Design and TypesettingLuis Chumpitazi Llave, Meyci Laurel - Lingo TABLE OF CONTENTSGratitudeAcronymsExecutive summaryChapter 1: Dimensions of poverty and equity in El Salvador1.1Two decades of poverty reduction, and new tendencies1.2The ticket out of poverty and hereditary opportunities1.3Poverty from a multidimensional perspectiveChapter 2: Without work there is no prosperity2.1The importance and precariousness of labor2.2Low productivity, weak labor markets2.3The challenge with human capital for better jobsChapter 3: Beyond work, what do Salvadorans live on?3.1The importance of private transfers on households’ budgets3.2Remittances and domestic transfers: a relief with a hidden side3.3Social protection with limited spending and targetingChapter 4: Poverty and climate change4.1The poor as the most vulnerable4.2The poorest’ tables are lacking food and water4.3Improving the households’ resilience to natural disastersChapter 5: How to improve well-being for all?5.1Income Generation5.2Access to quality services5.3Social protection to mitigate shocks and build resilienceAppendix. Comparing international and official poverty in El SalvadorReferencesImproving lives and livelihoodsPoverty and Equity Assessment forEl Salvador 2024 781016344660708286 Figures, Tables and BoxesFigure 1.Structure of policy options.Figure 2.Trends in poverty headcount and official poverty lines, 2000-2023.Figure 3.GDP per capita (constant 2021 PPP) and povertyUS 6.85 2017 PPP evolution, 2000-2022.Figure 4.Growth-Distribution decomposition of official poverty changes (2000-2023).Figure 5.Growth incidence curve, 2000, 2009, 2019 & 2023.Figure 6.Sources of monthly income (PPP 2017) for poorest households, 2019-2023.Figure 7.Gender gap in official poverty, by age, 2000 and 2023.Figure 8.Geographic distribution of poverty by municipality, 2019.Figure 9.Inequality evolution. Latin America, 2000-2023Figure 10.Structure of the Poverty Assessment for El Salvador 2024.Figure 11.Sources of monthly household income, by area of residenceand poverty status, 2023.Figure 12.Characterization of the working-age population (thousands), 2023.Figure 13.Labor stability, adequacy, and security along the income distribution, 2023.Figure 14.Schooling premium by type of employment, 2009, 2019 and 2023.Figure 15.Sources of non-labor monthly household income by areaof residence and poverty status, 2023.Figure 16.Public transfers as percentage of households’ income, 2000-2023.Figure 17.Access to sources of non-labor income, by area of residenceand poverty status, 2023.Figure 18.Sources of non-labor monthly household income inhouseholds that receive remittances, by poverty status, 2023.Figure 19.Demographics and migration in El SalvadorFigure 20.Sources of non-labor monthly household income in householdsthat receive domestic transfers in El Salvador, by poverty status, 2023.Figure 21.Extreme poverty in counterfactual scenarios with and withoutprivate transfers, 2023.Figure 22.Social Spending as a Percentage of GDP in El Salvador and LACcountries, 2000-2021.Figure 23.Vulnerability to poverty and number of disasters.Figure 24.Extreme poverty in counterfactual scenarios in front of asevere climate shock, 2023.Figure 25.Percentage of food insecurity by region, 2023.Table 1.Multidimensional poverty: deprivations and gaps (2023).Table 2.Lack of income for basic needs and relational deprivations, 2023.Box 1 .The Dry Corridor in El Salvador 131920212223-2425262733373839445051525354555657646568303269 AcknowledgmentsThe Poverty Assessment for El Salvador 2024 has been prepared by a team led byHugo Ñopo Aguilar. The core team comprised Sofia Hidalgo Berrios and GonzaloAguilar Riva, with substantive contributions by María Cárdenas Mendoza, JoséAndrés Oliva, Ana Palacios Taboada, and Adriana Velásquez Morales. Felipe BalcázarSalazar, Cesar del Pozo Loayza, Wilson Jimenez, and Rodrigo Surraco Willimancontributed to the preparation of background notes. The data support from OficinaNacional de Estadística y Censos del Banco Cen




