The Impact of Wage Policy on the Distribution of Labor Income and Poverty in Bolivia

Omar Velasco () and Manuela Puente ()
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Omar Velasco: Ministerio de Economía y Finanzas Públicas
Manuela Puente: Ministerio de Economía y Finanzas Públicas

Cuadernos de Investigación Económica Boliviana, 2016, vol. 1, issue 2, 1-23

Abstract: In Bolivia, the wage policy in recent years has been characterized by sustained increases of the minimum wage. Theory and empirical evidence suggest that this type of polices have various positive and negative effects. This paper analyzes the effects of the national minimum wage increase on the overall wage distribution and the poverty rate in Bolivia. Therefore, a pseudo-panel database is structured with information from the household survey conducted in 2005-2013. The results point to a positive effect of the minimum wage increases on the full wage distribution and on poverty reduction, considering both the formal and informal sectors.

Keywords: Minimum wage; Poverty; Pseudo panel (search for similar items in EconPapers)
JEL-codes: C23 I32 J38 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:efp:journl:v:1:y:2015:i:2:p:1-23

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