Kiel Working Papers, Kiel Institute for World Economics
No 1056:
The Social Impact of Structural Adjustment in Bolivia
Rainer Thiele
Abstract: This paper provides an account of the evolution of poverty
and inequality during adjustment in Bolivia, covering the period 198599.
It turns out that urban poverty declined somewhat after the initial
stabilization phase that followed the hyperinflation in 1985. A similar
evolution of per capita income suggests a positive impact of growth on
urban poverty, although the correlation between the two variables is rather
low in international perspective. Urban inequality as measured by the Gini
coefficient does not exhibit a clear long-term trend upward or downward,
but a rising premium for high-skilled workers indicates increasing
disparities in the urban labor market. For rural areas, the scant evidence
available points towards persistently high poverty levels and a widening
rural-urban gap.
Keywords: Poverty, Inequality, Structural Adjustment, Bolivia; (follow links to similar papers)
JEL-Codes: D3; I3; O1; (follow links to similar papers)
49 pages, July 2001
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