Economic Rebalancing and Service Delivery Efficiency

While labor earnings, particularly in public sector, drove middle class growth during the early 2000s, pensions played a greater role in recent years Contribution to observed inflow into middle class (in percentage) 100% 80% 60% 40% THE WORLD BANK IBRD IDA WORLD BANK GROUP 20% 0% 2001-2010 2001-2005 2006-2010 -20% Other income Private transfers Other public transfers Pensions ■Capital ■Wage (public) Wage (private) Employment rate ■Dependency (Old) ■Dependency (Young) Source: World Bank staff calculations using data from the RLSM-HSE, 2001-2010 6

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