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Low Social Mobility in Bolivia: Causes and Consequences for Development

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  • Lykke E. Andersen

Abstract

This 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 Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1046.

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Length: 47 pages
Date of creation: May 2001
Date of revision:
Handle: RePEc:kie:kieliw:1046

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Related research

Keywords: Social Mobility; Economic Growth; Public Policy; Bolivia.;

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References

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  1. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
  2. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 503-30, May.
  3. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  4. Michael Kremer, 1996. "How Much Does Sorting Increase Inequality?," NBER Working Papers 5566, National Bureau of Economic Research, Inc.
  5. Momi Dahan & Alejandro Gaviria, 1999. "Sibling Correlations and Social Mobility in Latin America," IDB Publications 6451, Inter-American Development Bank.
  6. Nancy Birdsall & Jere R. Behrman & Miguel Székely, 1998. "Intergenerational Schooling Mobility and Macro Conditions and Schooling Policies in Latin America," Research Department Publications 4144, Inter-American Development Bank, Research Department.
  7. Lakshmi K. Raut, 1996. "Signalling equilibrium, Intergenerational mobility and long-run growth," GE, Growth, Math methods 9603002, EconWPA.
  8. Hassler, J. & Rodriguez Mora, J.V., 1998. "IQ, Social Mobility and Growth," Papers 635, Stockholm - International Economic Studies.
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Citations

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Cited by:
  1. Krakowski, Michael, 2003. "Poverty reduction strategy papers in Latin America: the case of Bolivia," HWWA Reports 230, Hamburg Institute of International Economics (HWWA).
  2. Rainer Thiele, 2003. "The social impact of structural adjustment in Bolivia," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 299-319.
  3. Laure Pasquier-Doumer, 2004. "Vers plus d'égalité d'opportunités scolaires ? Évolution de la mobilité scolaire intergénérationnelle au Pérou depuis un siècle," Revue d’économie du développement, De Boeck Université, vol. 18(1), pages 101-134.
  4. Vargas, Martin, 2005. "Migración Municipal en Bolivia: Un Enfoque Espacial
    [Migration at municipal level in Bolivia: A spatial approach (spanish)]
    ," MPRA Paper 6109, University Library of Munich, Germany.
  5. Harper, Caroline & Marcus, Rachel & Moore, Karen, 2003. "Enduring Poverty and the Conditions of Childhood: Lifecourse and Intergenerational Poverty Transmissions," World Development, Elsevier, vol. 31(3), pages 535-554, March.
  6. Fabián Soria, 2008. "The impact of Community-Based Ecotourism Projects in Amboró National Park," Development Research Working Paper Series 03/2008, Institute for Advanced Development Studies.

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