Kiel Working Papers, Kiel Institute for World Economics
No 1073:
Towards a Dual Education System, A Labour Market Perspective on Poverty Reduction in Bolivia
Jann Lay and Manfred Wiebelt
Abstract: This paper addresses poverty reduction strategies from a
labour market perspective. Structural features and constraints are
emphasised using informality as a descriptive and segmentation as an
analytical concept. Divergent demand-side developments combined with
limited labour market mobility result in labour market segmentation.
Vicious skill circles are identified that keep the poor trapped in jobs
with low incomes. The analysis of the dimensions of informality in the
Bolivian labour market shows that its characteristics do not correspond to
the conventionally assumed informal-formal dichotomy. Empirical studies on
the Bolivian case are reviewed that support the hypothesis of a segmented
labour market with vicious poverty circles. The major policy conclusion for
poverty reduction drawn from the analysis is that education should be more
focused on employment.
Keywords: Dual education system, poverty reduction, Bolivia; (follow links to similar papers)
JEL-Codes: I3; O17; R23; (follow links to similar papers)
88 pages, August 2001
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