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Low Social Mobility in Bolivia: Causes and Consequences for Development

Author

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  • Andersen, Lykke Eg

    (IISEC, Universidad Católica Boliviana)

Abstract

This paper investigates social mobility in Bolivia. It is an issue of high policy relevance as the degree of social mobility can have strong implications for both poverty reducation 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, with many families remaining poor year after year and generation after generation. In addition, low social mobility implies an inefficient use of innate talent as well as poor incentives for work and study. This prevents the Bolivian economy from reaching its potential growth rates. The paper provides several recommendations for policies that could help increase social mobility, thereby reducing poverty and increasing long-run growth.

Suggested Citation

  • 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.
  • Handle: RePEc:ris:iisecd:2001_003
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    References listed on IDEAS

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    1. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
    2. Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    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. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    5. Kremer, M., 1996. "How Much Does Sorting Increase Inequality?," Working papers 96-18, Massachusetts Institute of Technology (MIT), Department of Economics.
    6. Lakshmi K. Raut, 1996. "Signalling equilibrium, Intergenerational mobility and long-run growth," GE, Growth, Math methods 9603002, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. 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.
    2. 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. 12(1), pages 101-134.
    3. 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.
    4. Krakowski, Michael, 2003. "Poverty reduction strategy papers in Latin America: the case of Bolivia," HWWA Reports 230, Hamburg Institute of International Economics (HWWA).
    5. 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.
    6. Lima, Luis Fernando, 2007. "Análisis de la Fertilidad a partir de las Encuestas de Hogares 1999 - 2004," Documentos de trabajo 4/2007, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    7. 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.

    More about this item

    Keywords

    Social Mobility; Economic Growth; Public Policy; Bolivia;

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General

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