Evidence of the impacts of minimum wage on labor market outcomes: The case of Bolivia

Marcelo Nicolas Claure Ramirez, Alejandra Leyton, Christian Valencia, Karenth Vanessa Sánchez Bohórquez, Jorge Davalos

Producción científica: Informe/libroInforme oficialrevisión exhaustiva


Economic theory suggests that minimum wages may lead to unemployment; nevertheless, empirical evidence in developed economies stays ambiguous. Evidence from developing countries is even more heterogenous due to the low law enforcement and weaker labor market institutions. Thus, our aim is to assess the impact of minimum wage increases on labor market outcomes in Bolivia, a country characterized by weak law compliance and high informality. Our identification strategy exploits differences in exposure to minimum wage increases across subsets of population for the period 2006-2013. Our results show positive and significant effects over real wages for men with no effects on employment, informalization or hours worked. Furthermore, we find evidence of gender discrimination since women are prone to suffer unemployment and informalization while not benefiting from higher real wages as men do. ; Minimum wage, unemployment, informal employment
Idioma originalInglés
Número de páginas50
EstadoPublicada - 2017

Serie de la publicación

NombrePartnership for economic policy working paper


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