Wasted years: Informality and returns to education in Bolivia

Pablo Mendieta ()

Revista Latinoamericana de Desarrollo Economico, 2022, issue 37, 87-111

Abstract: During the last years some estimates showed a low average return on schooling in Bolivia. With the use of two databases, the standard annual household survey, and the novel demand for skills survey, I found a non-linear shape of schooling returns. Even more, I improved the estimation with the use of a segmented labor market approach. Joint a matching technique, I estimated models which support the hypothesis that this pattern is due to a widespread informality issue. I explore the ways this result could be enhanced with a skill connection and a general-equilibrium segmented search labor model.

Keywords: Schooling returns; informality; Bolivia (search for similar items in EconPapers)
JEL-codes: C51 I26 J24 (search for similar items in EconPapers)
Date: 2022
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