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Towards a dual education system - a labour market perspective on poverty reduction in Bolivia

Listed author(s):
  • Lay, Jann
  • Wiebelt, Manfred

This paper addresses poverty reduction strategies from a labour market perspective. Structural features and constraints are emphasised using informality as a descriptive and segmentation as an analytical concept. Divergent demand-side developments combined with limited labour market mobility result in labour market segmentation. Vicious skill circles are identified that keep the poor trapped in jobs with low incomes. The analysis of the dimensions of informality in the Bolivian labour market shows that its characteristics do not correspond to the conventionally assumed informal-formal dichotomy. Empirical studies on the Bolivian case are reviewed that support the hypothesis of a segmented labour market with vicious poverty circles. The major policy conclusion for poverty reduction drawn from the analysis is that education should be more focused on employment.

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File URL: https://www.econstor.eu/bitstream/10419/2631/1/kap1073.pdf
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Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Working Papers with number 1073.

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Date of creation: 2001
Handle: RePEc:zbw:ifwkwp:1073
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  5. Joseph E. Stiglitz, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC's: The Labor Turnover Model," The Quarterly Journal of Economics, Oxford University Press, vol. 88(2), pages 194-227.
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  8. Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
  9. Mazumdar, Dipak, 1983. "Segmented Labor Markets in LDCs," American Economic Review, American Economic Association, vol. 73(2), pages 254-259, May.
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  11. Chaudhuri, Sarbajit, 2000. "Rural-Urban Migration, the Informal Sector, Urban Unemployment, and Development Policies: A Theoretical Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 353-364, October.
  12. Peattie, Lisa, 1987. "An idea in good currency and how it grew: The informal sector," World Development, Elsevier, vol. 15(7), pages 851-860, July.
  13. Duryea, Suzanne & Szekely, Miguel, 2000. "Labor markets in Latin America: a look at the supply-side," Emerging Markets Review, Elsevier, vol. 1(3), pages 199-228, November.
  14. Menno Pradhan & Arthur Van Soest, 1997. "Household Labor Supply In Urban Areas Of Bolivia," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 300-310, May.
  15. Tokman, Víctor E., 1978. "Las relaciones entre los sectores formal e informal," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), June.
  16. Tokman, Victor E., 1978. "An exploration into the nature of informal--formal sector relationships," World Development, Elsevier, vol. 6(9-10), pages 1065-1075.
  17. Psacharopoulos, George & Arieira, Carlos R. & Mattson, Robert, 1997. "Private education in a poor country: The case of urban Bolivia," Economics of Education Review, Elsevier, vol. 16(4), pages 395-406, October.
  18. Weller, Jürgen, 2000. "Tendencias del empleo en los años noventa en América Latina y el Caribe," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
  19. Klein, Emilio & Tokman, Víctor E., 2000. "La estratificación social bajo tensión en la era de la globalización," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
  20. Piore, Michael J, 1983. "Labor Market Segmentation: To What Paradigm Does It Belong?," American Economic Review, American Economic Association, vol. 73(2), pages 249-253, May.
  21. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
  22. Andersen, Lykke Eg & Nina, Osvaldo, 2000. "The HIPC Initiative In Bolivia," Documentos de trabajo 4/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
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