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Low Social Mobility in Bolivia: Causes and Consequences for Development

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  • Andersen, Lykke E.

Abstract

This paper investigates social mobility in Bolivia and discusses its implications for poverty reduction and long-run growth. Regressions based on household survey data show that social mobility is very low in Bolivia, even by Latin American standards. This is mainly caused by an inadequate public education system, a high degree of assortative mating, and insufficient rural-urban migration. As a consequence, poverty tends to be fairly persistent over time. Moreover, low social mobility implies an inefficient use of innate talent and poor incentives for work and study. This prevents the Bolivian economy from reaching its potential growth rates. The paper provides several recommendations for policies to increase social mobility, thereby reducing poverty and increasing long-run growth.

Suggested Citation

  • Andersen, Lykke E., 2001. "Low Social Mobility in Bolivia: Causes and Consequences for Development," Kiel Working Papers 1046, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1046
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    References listed on IDEAS

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    1. Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
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    4. Behrman, Jere R. & Birdsall, Nancy & Székely, Miguel, 1998. "Intergenerational Schooling Mobility and Macro Conditions and Schooling Policies in Latin America," IDB Publications (Working Papers) 6084, Inter-American Development Bank.
    5. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    6. Lakshmi K. Raut, 1996. "Signalling equilibrium, Intergenerational mobility and long-run growth," GE, Growth, Math methods 9603002, University Library of Munich, Germany.
    7. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
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    Citations

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    Cited by:

    1. Vargas, Martin, 2005. "Migración Municipal en Bolivia: Un Enfoque Espacial [Migration at municipal level in Bolivia: A spatial approach (spanish)]," MPRA Paper 6109, University Library of Munich, Germany.
    2. Krakowski, Michael, 2003. "Poverty Reduction Strategy Papers in Latin America: The Case of Bolivia," Report Series 26106, Hamburg Institute of International Economics.
    3. Krishnakumar, Jaya & Nogales, Ricardo, 2020. "Education, skills and a good job: A multidimensional econometric analysis," World Development, Elsevier, vol. 128(C).
    4. Krakowski, Michael, 2003. "Poverty reduction strategy papers in Latin America: The case of Bolivia," HWWA Reports 230, Hamburg Institute of International Economics (HWWA).
    5. Fabián Soria, 2008. "The impact of Community-Based Ecotourism Projects in Amboró National Park," Development Research Working Paper Series 03/2008, Institute for Advanced Development Studies.
    6. Lima, Luis Fernando, 2007. "Análisis de la Fertilidad a partir de las Encuestas de Hogares 1999 - 2004," Documentos de trabajo 4/2007, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    7. Harper, Caroline & Marcus, Rachel & Moore, Karen, 2003. "Enduring Poverty and the Conditions of Childhood: Lifecourse and Intergenerational Poverty Transmissions," World Development, Elsevier, vol. 31(3), pages 535-554, March.
    8. Rainer Thiele, 2003. "The social impact of structural adjustment in Bolivia," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 299-319.
    9. Laure Pasquier-Doumer, 2004. "Vers plus d'égalité d'opportunités scolaires ? Évolution de la mobilité scolaire intergénérationnelle au Pérou depuis un siècle," Revue d’économie du développement, De Boeck Université, vol. 12(1), pages 101-134.

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    More about this item

    Keywords

    Social Mobility; Economic Growth; Public Policy; Bolivia;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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