The Impact of Structural Reforms on Wages and employment: The case of Formal versus Informal Workers in Bolivia

Julius Spatz ()
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Julius Spatz: Kiel Institute for World Economics, Postal: Duesternbrooker Weg 120. 24105 Kiel. Germany

Revista Latinoamericana de Desarrollo Economico, 2004, issue 2, 91-122

Abstract: This paper seeks to contribute to the ongoing controversy on the distributional effects of structural reforms in developing countries. To this end, we set up a small-scale macroeconomic model of a dual economy to capture the transmission mechanisms through which the deregulation of product and factor markets, the liberalization of the trade and FDI regime, and the privatization of public companies impact on the distribution of employment and wages between the formal and the informal sector, We empirically test the implications of our theoretical model in a detailed case study on the structural reform process in Bolivia since 1985.

Keywords: Workers; Bolivia; Formal; Informal (search for similar items in EconPapers)
JEL-codes: Z00 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (4)

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