Economics at your fingertips  

Two Stories of Wage Dynamics in Latin America: Different Policies, Different Outcomes

Gustavo J Canavire Bacarreza () and Luis C. Carvajal-Osorio ()
Additional contact information
Gustavo J Canavire Bacarreza: Inter-American Development Bank
Luis C. Carvajal-Osorio: Universidad EAFIT

Authors registered in the RePEc Author Service: Gustavo Javier Canavire-Bacarreza ()

No 11584, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This article explores the variation in the wage distributions of two Latin American countries, Bolivia and Colombia, which have had different political and economic strategies in recent years. Using data from household surveys, a decomposition of the wage distribution in each country using functional principal component analysis is conducted. The results suggest that Bolivia, which has implemented left-wing economic policies, has experienced a general increase in wages, especially benefiting the least skilled workers and the informal sector. On the other hand, the wage distribution in Colombia, whose economic policy has focused on free-market principles, has become more concentrated around the median wage, mainly due to changes in formal sector wages.

Keywords: wage dynamics; functional principal component analysis; wage distributions; Latin America; Bolivia; Colombia (search for similar items in EconPapers)
JEL-codes: J31 J38 C14 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2018-06
New Economics Papers: this item is included in nep-dev, nep-lam and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

Page updated 2020-05-28
Handle: RePEc:iza:izadps:dp11584