Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129296
Authors: 
Muriel Hernández, Beatriz
Vera Cossio, Horacio
Year of Publication: 
2015
Series/Report no.: 
Development Research Working Paper Series 08/2015
Abstract: 
This paper analyzes the effects of economic growth on labor earnings in Bolivia during 1999-2012. More precisely, we develop a labor market model to capture both cycle and trend effects of prices, and production on earnings, which is estimated econometrically using pseudo-panel data methods. The results show that labor earnings have had a pro-cyclical behavior. In particular, we find that, in the short run, an increase of 1% in prices or production explains an earnings rise of around 0.5%, while, in the long run, a production increase of 1% is associated with an earnings variation of 0.4%. Furthermore, we find that labor earnings growth by sector follows, to some extent, the economic performance of its corresponding sector, which responds to the sector segmentation characteristics in the Bolivian labor market.
Subjects: 
Bolivia
earnings
wages
economic growth
business cycle
pseudo-panel
JEL: 
E29
E32
J29
J39
J42
Document Type: 
Working Paper

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