Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237495 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01216
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
In this paper we aim to disentangle how sectoral economic growth affects the size of the middle class, using state-level data of Bolivia from 2000 to 2017 and breaking the three main economic activities into subsectors to attain more-specific results. Because the data from Bolivia are limited, we utilize a Bayesian hierarchical longitudinal model for small samples. We find that the commerce and services sectors have the biggest impact on the size of the middle class in Bolivia and that mining and agriculture have a similar though smaller effect. Our results also suggest that both formality and public social investment do have significant effects, albeit smaller ones.
Subjects: 
middle class
economic growth
informality
JEL: 
C23
D63
I32
O41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.