Unemployment in Bolivia: Risks and Labor Market Policies

Werner Hernani, Maria Villegas and Ernesto Yanez

No 4758, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: 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.

JEL-codes: J08 J21 J64 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-iue, nep-lab and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Unemployment in Bolivia: Risks and Labor Market Policies (2011)
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