Kiel Working Papers, Kiel Institute for World Economics
No 1046:
Low Social Mobility in Bolivia: Causes and Consequences for Development
Lykke E. Andersen
Abstract: This paper investigates social mobility in Bolivia and
discusses its implications for poverty reduction and long-run growth.
Regressions based on household survey data show that social mobility is
very low in Bolivia, even by Latin American standards. This is mainly
caused by an inadequate public education system, a high degree of
assortative mating, and insufficient rural-urban migration. As a
consequence, poverty tends to be fairly persistent over time. Moreover, low
social mobility implies an inefficient use of innate talent and poor
incentives for work and study. This prevents the Bolivian economy from
reaching its potential growth rates. The paper provides several
recommendations for policies to increase social mobility, thereby reducing
poverty and increasing long-run growth.
Keywords: Social Mobility, Economic Growth, Public Policy, Bolivia.; (follow links to similar papers)
JEL-Codes: E60; I32; J12; J13; (follow links to similar papers)
47 pages, May 2001
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