Unemployment Duration in Bolivian Urban Area: An Analysis of Socioeconomic Characteristics and Educational Level

Revista de Análisis Económico, Vol. 21, 2006

27 Pages Posted: 23 Feb 2014

See all articles by Gustavo J. Canavire-Bacarreza

Gustavo J. Canavire-Bacarreza

Inter-American Development Bank (IDB); IZA Institute of Labor Economics

Fernando Landa

Unidad De Analisis De Politicas Economicas (UDAPE)

Abstract

This paper explores the unemployment duration in Bolivia utilizing data from the household surveys MECOVI. The main objective of the paper is to study the characteristics of unemployment duration and its determinants; to this aim we apply an exploratory analysis of unemployment duration and unemployment itself. We also apply stochastic dominance and count models the poisson and negative binomial kind.

The exploratory and stochastic dominance analysis showed that the mean of unemployment duration reduced in Bolivia over the period 1999-2003. Based on the use of stochastic dominance techniques we could find clear evidence of improvement in welfare terms, measured by unemployment duration over the period 1999-2003, nevertheless it's showed an increase on short term unemployment and a decrease on long term unemployment.

Using count models we could establish that age, sex and higher educational levels increase the unemployment duration in Bolivia, while the indigenous condition reduce it and income levels have a neutral effect. Compared to other countries, people with higher educational levels have higher unemployment duration this due to the characteristics of Bolivian labor market demand that present lower reserve salaries.

Note: Downloadable document is in Spanish.

Keywords: unemployment duration, stochastic dominance, count models

JEL Classification: J64, C41

Suggested Citation

Canavire Bacarreza, Gustavo Javier and Landa Casazola, Fernando Ivan Angel, Unemployment Duration in Bolivian Urban Area: An Analysis of Socioeconomic Characteristics and Educational Level. Revista de Análisis Económico, Vol. 21, 2006. Available at SSRN: https://ssrn.com/abstract=951662

Gustavo Javier Canavire Bacarreza (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Fernando Ivan Angel Landa Casazola

Unidad De Analisis De Politicas Economicas (UDAPE) ( email )

Mariscal Santa Cruz
Palacio de las Comunicaciones P-18 Casilla 12087
La Paz
Bolivia

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