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Post-reform trends in wage inequality: the case of urban Bolivia

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  • Steiner, Susan
  • Spatz, Julius

Abstract

This paper seeks to contribute to the ongoing controversy on the distributional effects of structural reforms in developing countries. Applying inequality indices and Fields' (2001) decomposition methodology to Bolivian household survey data of the years 1989 to 1997, we identify recent trends in wage inequality of urban Bolivia. Using a rent-based dual-economy model, we can link these trends to the structural reforms undertaken in Bolivia since 1985.

Suggested Citation

  • Steiner, Susan & Spatz, Julius, 2002. "Post-reform trends in wage inequality: the case of urban Bolivia," Kiel Working Papers 1126, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1126
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    References listed on IDEAS

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    1. Haskel, Jonathan & Sanchis, Amparo, 1995. "Privatisation and X-Inefficiency: A Bargaining Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 43(3), pages 301-321, September.
    2. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
    3. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
    4. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323.
    5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    7. Andersen, Lykke Eg, 1999. "Wage Differentials Between Bolivian Cities," Documentos de trabajo 2/1999, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    8. repec:bla:econom:v:60:y:1993:i:238:p:161-81 is not listed on IDEAS
    9. Paunovic, Igor, 2000. "Growth and reforms in Latin America and the Caribbean in the 1990s," Series Históricas 7604, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Government of Bolivia & Gobierno de Bolivia, 2001. "Bolivia: Poverty Reduction Strategy," IDB Publications (Working Papers) 80367, Inter-American Development Bank.
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    Citations

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    Cited by:

    1. Beatriz Muriel, 2011. "Rethinking Earnings Determinants in the Urban Areas of Bolivia," Development Research Working Paper Series 06/2011, Institute for Advanced Development Studies.
    2. Beatriz Muriel Hernández, 2016. "An Analysis of Firm Characteristics as Earnings Determinants: The Urban Bolivia Case," Development Research Working Paper Series 04/2016, Institute for Advanced Development Studies.
    3. Nunnenkamp, Peter & Schweickert, Rainer & Wiebelt, Manfred, 2006. "Distributional effects of FDI: How the interaction of FDI and economic policy affects poor households in Bolivia," Kiel Working Papers 1281, Kiel Institute for the World Economy (IfW Kiel).
    4. repec:zbw:ifwkie:4251 is not listed on IDEAS
    5. repec:aru:wpaper:201304 is not listed on IDEAS

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    More about this item

    Keywords

    Structural Reforms; Inequality; Dual Economy; Bolivia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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