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Wasted years: Informality and returns to education in Bolivia

Author

Listed:
  • Mendieta Ossio, Pablo

    (Bolivian Center of Economics at CAINCO.)

Abstract

During the last years some estimates showed a low average return on schooling in Bolivia. With the use of two databases, the standard annual household survey, and the novel demand for skills survey, I found a non-linear shape of schooling returns. Even more, I improved the estimation with the use of a segmented labor market approach. Joint a matching technique, I estimated models which support the hypothesis that this pattern is due to a widespread informality issue. I explore the ways this result could be enhanced with a skill connection and a general-equilibrium segmented search labor model.

Suggested Citation

  • Mendieta Ossio, Pablo, 2022. "Wasted years: Informality and returns to education in Bolivia," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 37, pages 87-111, Mayo.
    • Handle: RePEc:ris:revlde:2000
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    More about this item

    Keywords

    Schooling returns; informality; Bolivia;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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