Explaining Inequality and Poverty Reduction in Bolivia

Author/Editor:

Mauricio Vargas ; Santiago Garriga

Publication Date:

December 18, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We investigate the factors driving Bolivia’s success in reducing inequality and poverty during the last 15 years. Our evidence suggests that the reduction was driven mainly by labor income growth at the bottom end of the income distribution. Increases in non-labor income (rents, transfers, remittances) also played a role, but a smaller one, although the introduction of Renta Dignidad has made a big difference for the elderly poor. Labor income increases were concentrated in the informal, low-skilled service and manufacturing sectors. As the gains from the commodity boom go into reverse, and the fiscal envelope becomes much tighter, it will be essential that labor and social policies are well designed and targeted to preserve the poverty and inequality reduction of the last 15 years.

Series:

Working Paper No. 15/265

Subject:

English

Publication Date:

December 18, 2015

ISBN/ISSN:

9781513529608/1018-5941

Stock No:

WPIEA2015265

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

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