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On the relationship between labor market policies and outcomes in Bolivia: A search and matching approach

Author

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  • Ricardo Nogales
  • Pamela Córdova
  • Manuel Urquidi

Abstract

In this paper we assess the relationship between labor policies and market outcomes in Bolivia, accounting for a large informal sector mostly comprised of self-employed entrepreneurs. We calibrate a job search and matching model to reproduce labor market features in 2013, a period in which important labor policy changes were simultaneously active for the first time. We focus on some effects of three specific policies namely a 14th salary, minimum wage increases and contributions to a ‘solidary pension fund’ on the sorting of workers between unemployment, formal and informal employment, as well as on the formal wage schedule.

Suggested Citation

  • Ricardo Nogales & Pamela Córdova & Manuel Urquidi, 2019. "On the relationship between labor market policies and outcomes in Bolivia: A search and matching approach," Estudios de Economia, University of Chile, Department of Economics, vol. 46(1), pages 61-87, June.
    • Handle: RePEc:udc:esteco:v:46:y:2019:i:1:p:61-87
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    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/52635/55229
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    Citations

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    Cited by:

    1. Rómulo A. Chumacero, 2019. "Skills versus Luck: Bolivia and its recent Bonanza," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-27, December.
    2. Ricardo Nogales & Pamela Córdova & Manuel Urquidi, 2020. "The impact of university reputation on employment opportunities: Experimental evidence from Bolivia," The Economic and Labour Relations Review, , vol. 31(4), pages 524-542, December.
    3. Luis Enrique Escalante & Helene Maisonnave, 2022. "Gender and Covid‐19: Are women bearing the brunt? A case study for Bolivia," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(4), pages 754-770, May.

    More about this item

    Keywords

    Labor markets; matching models; informality; labor policies;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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