Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180602 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11584
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This article explores the variation in the wage distributions of two Latin American countries, Bolivia and Colombia, which have had different political and economic strategies in recent years. Using data from household surveys, a decomposition of the wage distribution in each country using functional principal component analysis is conducted. The results suggest that Bolivia, which has implemented left-wing economic policies, has experienced a general increase in wages, especially benefiting the least skilled workers and the informal sector. On the other hand, the wage distribution in Colombia, whose economic policy has focused on free-market principles, has become more concentrated around the median wage, mainly due to changes in formal sector wages.
Subjects: 
wage dynamics
functional principal component analysis
wage distributions
Latin America
Bolivia
Colombia
JEL: 
J31
J38
C14
Document Type: 
Working Paper

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