Kiel Working Papers, Kiel Institute for World Economics
No 1186:
The Impact of Structural Reforms on Wages and Employment: The Case of Formal versus Informal Workers in Bolivia
Julius Spatz
Abstract: This paper seeks to contribute to the ongoing controversy
on the distributional effects of structural reforms in developing
countries. To this end, we set up a small-scale macroeconomic model of a
dual economy to capture the transmission mechanisms through which the
deregulation of product and factor markets, the liberalization of the trade
and FDI regime, and the privatization of public companies impact on the
distribution of employment and wages between the formal and the informal
sector. We empirically test the implications of our theoretical model in a
detailed case study on the structural reform process in Bolivia since
1985.
Keywords: Structural Reforms, Informal Sector, Wages, Employment, Bolivia; (follow links to similar papers)
JEL-Codes: D58,; J50,; L16,; O17; (follow links to similar papers)
45 pages, October 2003
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