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Unemployment in Bolivia: Risks and Labor Market Policies

  • Werner Hernani
  • Maria Villegas
  • Ernesto Yanez
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    This paper attempts to evaluate the effectiveness of Bolivia’s labor market institutions, particularly the Plan Nacional de Empleo de Emergencia (PLANE). It is found that unemployment as conventionally defined may not be the most important problem in Bolivia’s labor market, as the non-salaried market is always an alternative. While un- employment durations and unemployment scarring consequences are relatively low, labor market regulations and labor market programs do not help to increase the size of the formal market, apparently as a result of Bolivia’s rigid labor markets and labor policies based mainly on temporary employment programs. Such programs, however, may have helped to smooth consumption. Given the country’s high level of infor- mality, protection policies are second best to active policies specifically designed to increase the productivity/employability of vulnerable populations.

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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=36610093
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    Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4758.

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    Date of creation: Dec 2011
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    Handle: RePEc:idb:wpaper:4758
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    1. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    2. Kanbur, Ravi, 2009. "Conceptualizing Informality: Regulation and Enforcement," Working Papers 48926, Cornell University, Department of Applied Economics and Management.
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