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Unemployment in Bolivia: Risks and Labor Market Policies

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  • Werner Hernani
  • Maria Villegas
  • Ernesto Yanez

Abstract

This paper attempts to evaluate the effectiveness of Bolivia’s labor market institutions, particularly the Plan Nacional de Empleo de Emergencia (PLANE). It is found that unemployment as conventionally defined may not be the most important problem in Bolivia’s labor market, as the non-salaried market is always an alternative. While un- employment durations and unemployment scarring consequences are relatively low, labor market regulations and labor market programs do not help to increase the size of the formal market, apparently as a result of Bolivia’s rigid labor markets and labor policies based mainly on temporary employment programs. Such programs, however, may have helped to smooth consumption. Given the country’s high level of infor- mality, protection policies are second best to active policies specifically designed to increase the productivity/employability of vulnerable populations.

Suggested Citation

  • Werner Hernani & Maria Villegas & Ernesto Yanez, 2011. "Unemployment in Bolivia: Risks and Labor Market Policies," Research Department Publications 4758, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4758
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    References listed on IDEAS

    as
    1. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    2. Kanbur, Ravi, 2009. "Conceptualising Informality: Regulation and Enforcement," IZA Discussion Papers 4186, Institute of Labor Economics (IZA).
    3. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Unemployment in Bolivia: Risks and Labor Market Policies
      by Maximo Rossi in Wikiprogress América Latina on 2012-05-22 21:37:00

    Citations

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    Cited by:

    1. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    2. Escudero, Verónica & López Mourelo, Elva & Pignatti, Clemente, 2020. "Joint provision of income and employment support: Evidence from a crisis response in Uruguay," World Development, Elsevier, vol. 134(C).
    3. repec:idb:brikps:7203 is not listed on IDEAS
    4. Antonia Asenjo & Verónica Escudero & Hannah Liepmann, 2024. "Why Should we Integrate Income and Employment Support? A Conceptual and Empirical Investigation," Journal of Development Studies, Taylor & Francis Journals, vol. 60(1), pages 1-29, January.
    5. Gehrke, Esther & Hartwig, Renate, 2015. "How can public works programmes create sustainable employment?," IDOS Discussion Papers 11/2015, German Institute of Development and Sustainability (IDOS).
    6. -, 2016. "Protección y formación: instituciones para mejorar la inserción laboral en América Latina y Asia," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40660 edited by Cepal, May.
    7. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    8. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.

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    More about this item

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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