Low Social Mobility in Bolivia: Causes and Consequences for Development
AbstractThis 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.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1046.
Length: 47 pages
Date of creation: May 2001
Date of revision:
Social Mobility; Economic Growth; Public Policy; Bolivia.;
Other versions of this item:
- Andersen, Lykke Eg, 2001. "Low Social Mobility in Bolivia: Causes and Consequences for Development," Documentos de trabajo 3/2001, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
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