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  • Articles  (40)
  • J31  (37)
  • Educación
  • ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft  (29)
  • La Paz: Institute for Advanced Development Studies (INESAD)
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  • Articles  (40)
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  • 1
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-11-19
    Description: This article analyzes the importance of firm characteristics to explain earnings in urban Bolivia. Initially I propose a new simple theoretical model of segmented labor market where, in equilibrium, individual and firm variables jointly determine earnings at the worker level. The key for achieving this equilibrium is that workers have both specific preferences and heterogonous skills provided by years of schooling, which are in turn associated to certain firms. Given the household surveys information, I estimate two alternative earnings functions from this model, one for unsalaried workers, for which there is detailed firm data and one for salaried workers, in which sector, size and formality are used as firm proxies. I find not only that firm characteristics are fundamental determinants of earnings but that regressions that include only individual characteristics present highly overestimated coefficients.
    Keywords: C26 ; J20 ; J24 ; J31 ; ddc:330 ; earnings functions ; labor market segmentation ; firm characteristics ; Bolivia
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 2
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-11-19
    Description: El presente trabajo de investigación busca contextualizar la pobreza monetaria en Bolivia y, a partir de aquí, establecer la importancia de la situación laboral de los trabajadores del hogar. Las estimaciones muestran que la pobreza ha disminuido de manera importante entre 1999 y 2012; siendo más significativo -en términos agregados- el efecto crecimiento que el de redistribución. Estos cambios pueden asociarse al mejor desempeño de los ingresos laborales; una vez que éstos representan cerca del 90% de los ingresos totales del hogar. Por último, destaca también un mayor porcentaje de miembros de la familia trabajando en los hogares no-pobres comparativamente con los pobres, y una concentración relativa de los trabajadores pobres en la producción agropecuaria y los no-pobres en los servicios sociales (educación, salud, servicios comunales y otros).
    Keywords: I32 ; J21 ; J31 ; ddc:330 ; Pobreza ; Ingreso laboral ; Ocupación
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: Spanish
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  • 3
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: There is considerable debate on whether the prospects of entering a high-paid job are better for those in low-paid jobs compared to the unemployed. Whilst some scholars argue that there is a scarring effect of unemployment others highlight that low pay might signal a low productivity and furthermore reduce the time searching for a better paid job. Using longitudinal data for working age men in England matched with local labor market indicators, we estimate several random-effects probit models and find no difference in the probability of becoming high-paid employed between low-paid workers and the unemployed in areas with low unemployment. However, in areas with high unemployment and high pay, low-paid workers have a higher probability of entering high-paid employment than the unemployed. Moreover, there is a penalty for low-wage workers compared to the unemployed in low-pay areas in their probability of entering high-paid employment.
    Keywords: J64 ; J62 ; J31 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 4
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: The U.S. wage and earnings distributions display significantly higher levels of inequality today compared to the late 1960's. The aim of this paper is twofold. First, we want to assess to what extent the observed changes in inequality can be explained by a model that incorporates the technology-education race model of Tinbergen (1974) into a standard incomplete markets model that macroeconomists use to study inequality. Second, we want to use this model to decompose the changes in the skill premium and in overall inequality into four components: skill-biased technical change, increase in the relative supply of skilled workers, increase in residual wage volatility, and changes in tax policy. We construct an incomplete markets model with capital-skill complementarity in which the wage distribution responds endogenously to technological changes. That is, technological advancements - modeled as a decline in the price of equipments - increase the amount of equipments in the economy which increases the skill premium endogenously. We calibrate the deep parameters of the model to late 1960's U.S. economy and find that the model matches well the inequality measures in the data. We find that our model overestimates somewhat the changes in both the skill premium and overall measures of inequality between the 1960's and the 2000's. We then decompose the change in inequality into changes in technology, relative supply of skilled workers, residual wage risk, and taxes. In line with Tinbergen's technology-education race theory, we find that the skill premium is most significantly affected by the changes in technology and supply of skilled workers. We also identify a mechanism not previously analyzed in the literature: an increase in residual wage risk leads to higher precautionary savings and thus to higher levels of aggregate capital. Due to capital-skill complementarities in the production function, this leads to an increase in the skill premium and thus to a further increase in inequality.
    Keywords: E25 ; J31 ; O33 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 5
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: A consensus has emerged that agglomeration economies are an important factor explaining why firms cluster next to each other. Yet disagreement remains over the sources of these agglomeration effects, given non-trivial measurement challenges. This paper is the first to present direct evidence showing how localized knowledge spillovers arise from workers changing jobs within the same local labor market. Specifically, I as-sess the extent to which firm-to-firm labor mobility enhances the productivity of firms located near highly productive firms, using a unique dataset combining Social Security earnings records and balance sheet information for Veneto, a region of Italy with many successful industrial clusters. I first identify a set of highly productive firms, then show that hiring workers with experience at these firms significantly increases the productivity of other firms. To address identification threats, primarily due to unobservable firm-level productivity shocks correlated with hiring, I use a novel instrumental vari- able strategy, which exploits downsizing events at highly productive firms, in addition to control function methods in the spirit of the productivity literature. My findings from both approaches imply that worker flows can explain around 10 percent of the productivity gains experienced by other firms when new highly productive firms are added to a local labor market.
    Keywords: R10 ; D24 ; J31 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 6
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: Using administrative data for West Germany, we investigate whether part of the urban wage premium stems from fierce competition in thick labour markets. We first document fewer search frictions in denser labour markets. We further show that controlling for search frictions lowers the wage premium from a one standard deviation rise in log population density by 1.3 1.4pp in specifications including worker fixed effects. We lastly find less monopsony power in denser markets. Regional differences in monopsony power predict a wage premium of 1.4 1.9%, thereby accounting for the observed drop in the premium when controlling for labour market frictions.
    Keywords: R23 ; J42 ; J31 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 7
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: This paper presents a 3x3 general equilibrium model of an OLG-economy with financial intermediaries, technological uncertainty, heterogeneous agents with quasi-homothetic preferences to analyze structural change between the real and the financial sector as well as within the financial sector. Besides the consumption and investment good two types of financial services are produced. The financial services support agents in choosing their investment strategy and managing their portfolios. The three factors of production are: Capital, skilled and unskilled labor. The financial market provides deposits and an incomplete set of securities. Payoffs of assets are determined by the future profitability of the technologies in which they are invested. We show that structural change is generated by rising per-capita income, by an increase in inequality, stronger market power of firms or directed technical change. In turn, structural change can raise inequality. We identify conditions under which a self-feeding circle between inequality and structural change with respect to finance emerges.
    Keywords: O16 ; J31 ; D90 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 8
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: This paper studies whether the transition from a centrally planned to a market economy offers fundamentally new perspectives for those who, in economic terms, were relatively deprived under the old regime. Previous empirical research on this question has been limited by the availability of suitable representative longitudinal micro-data that tracks individuals' labour market careers across different political and economic regimes. Our study seeks to fill this research gap by looking at the transition of Eastern Germany following German Unification. Using a unique large-scale German administrative data set, we measure individuals' relative economic position by exploiting information on whether individuals were in the bottom of the pre-unification wage distribution. We further approach the question of how workers' low or high-wage status determines their wage and labour market status within and across different regimes. We first demonstrate that unobserved factors are the main drivers of low-wage persistence and are regime-dependent. We further show that, consistent with signalling considerations, economic dependencies across different regimes are only of minor relevance. Genuine state dependence after Unification amounts to relatively large values of about 15 per cent for males and 19 per cent for females. This measure of persistence is heterogeneous across time, indicating a strong adjustment process and the importance of signalling considerations.
    Keywords: J31 ; J64 ; P21 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 9
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: How important is mastering information and communications technology (ICT) in modern labor markets? Previous research offers no guidance in assessing the labor-market returns to ICT skills, primarily because skill data have been unavailable. We draw on unique data that provide internationally comparable information on ICT skills in 19 countries. Using an instrument that leverages cross-country variation in the technologically determined probability of having Internet access, we find that ICT skills are substantially rewarded in the labor market. Placebo estimations show that exogenous Internet availability cannot explain numeracy or literacy skills, suggesting that our identifying variation is independent of a person s general ability.
    Keywords: J31 ; L96 ; K23 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 10
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: This paper addresses the importance of compositional changes in the labor force for the development of the wage distribution. Demographic change and higher educational attainment imply a shift toward employees with more experience and/or better education. These groups are characterized by higher relative wages as well as higher within-group wage inequality. Mechanically, these compositional shifts entail a rise in wage inequality. We discuss the mechanisms theoretically and present empirical evidence using data of the German Socio-Economic Panel from the mid 1990's to 2012. Accounting for the parallel changes in the age structure and the educational background of the labor force, these compositional effects alone can explain one quarter of the observed increase in aggregate wage inequality.
    Keywords: J31 ; D31 ; J11 ; ddc:330
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  • 11
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: The current paper studies discrimination in a model in which promotions are used as signals of worker ability. The model can account for both statistical and taste-based discrimination. A positive discrimination policy lowers the promotion standard for the workers who are discriminated against. This is beneficial for the workers in the middle of the ability distribution because these workers are promoted if and only if the policy is in place. Instead, workers of either high or low ability generally suffer from the policy because the policy does not change their promotion probability but weakens the positive signal of being promoted and strengthens the negative signal of not being promoted. We also show that the policy may increase or decrease efficiency and that it may aggravate wage inequality.
    Keywords: J31 ; J78 ; M51 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 12
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: This paper presents a search model with heterogeneous workers, social networks and endogenous search intensity. There are three job search channels available to the unemployed: costly formal applications and two costless informal channels - through family and professional networks. The gain from being employed is increasing in the productivity, so the lowest motivation for preparing formal applications is proved to be among the least productive worker types. We assume that professional contacts exhibit a strong degree of homophily, thus it is profitable for firms to direct their network search towards more productive incumbent employees. So the probability of a professional referral is increasing in the productivity of the worker, which mitigates the incentives to use the formal channel of search. Therefore, the model predicts that workers in the right (left) tail of the productivity distribution have the highest propensity of finding a job with a help of professional (family) contacts, whereas the formal channel of search is mostly utilized by workers in the middle range of the distribution. This explains the U-shaped referral hiring pattern in the model. Endogenous sorting of workers across channels also implies that professional (family) referrals are associated with wage premiums (penalties) compared to the formal channel of search.
    Keywords: J23 ; J31 ; J64 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 13
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: Large-scale pension reforms can have redistributive wage effects across generations and education groups when the labour market suffers from skill mismatch. A quasi-experimental retirement shock in Ukraine illustrates the effect of labour scarcity on wage growth and returns to education: it reveals that young and well educated workers enjoyed significant wage growth accelerations while older workers with outdated skills did not benefit from the retirement of their comparable peers. The estimated wage effects are in line with predictions from a simple heterogeneous labour demand model applied to a cross-section of Ukrainian firms. The paper illustrates that general equilibrium wage effects can be estimated in a policy evaluation framework if quasi-experiments fulfil very restrictive preconditions.
    Keywords: J20 ; J31 ; P23 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 14
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: In this paper we study the relationship between intersectoral wage inequality and economic growth. In the empirical part of the paper, we find a negative correlation of relative wages in the financial sector with respect to manufacturing sector with subsequent economic growth in case of the U.S. states from 1977 to 2011. We show that the result is robust to different standard estimation techniques and control variables. A similar while somewhat less robust result applies to the case of relative sector sizes as measured by the labor force. In the theoretical part we aim at constructing a tractable general equilibrium model of financial intermediation, entrepreneurship and growth with an imperfect labor market, that helps to explain the observed empirical regularities.
    Keywords: J24 ; J31 ; O41 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 15
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: This paper investigates the effect of the size of the local labour market on skill mismatch. Using survey data for Germany, we find that male workers in large cities are both less likely to be overqualified for their job and to work in a different field than the one they are trained for. Different empirical strategies are employed to account for the potential sorting of talented workers into more urbanized areas. Results on individuals never moving from the place of childhood and fixed-effects estimates obtaining identification through regional migrants suggest that sorting does not fully explain the existing differences in qualification mismatch across areas. This provides evidence of the existence of agglomeration economies through better matches. However, better job matching in larger cities seems to explain only a small part of the urban wage premium.
    Keywords: R23 ; J24 ; J31 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 16
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: In this study we investigate the minimum wage (MW) effects for a German sub-construction sector where the MW bites extraordinary hard by international standards. Within a quasi-experiment we estimate the Quantile Treatment Effects of the MW on the conditional and unconditional distribution of earnings. For Eastern Germany, the results indicate significant real (nominal) wage increases that ripple up to about the 0.6th quantile. However, the MW also led to declining real wages (stagnating nominal wages) among upper-decile workers, thus reducing the average pay reward for high-skilled labour in the sector. We provide evidence that a rising labour cost burden for firms together with an increased bargaining power of employers over workers still employed in the sector led to wage moderation at the upper decile, particularly among smaller East German firms. Overall this paper demonstrates how a MW geared towards the lower rank may render unexpected side effects for other workers located higher up in the wage distribution and who are mostly assumed to be unaffected by such policy interventions.
    Keywords: J08 ; J31 ; C21 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 17
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: In general, retirement is seen as a pure labor supply phenomenon, but firms can have strong incentives to send expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep seniority wage profiles as incentives for firms to dismiss older workers before retirement. Conditional on individual retirement incentives, e.g. social security wealth or health status, and personal fixed effects, the steepness of the wage profile will have different incentives for workers as compared to firms when it comes to the retirement date. Using an instrumental variable approach to account for selection of workers in our firms and for reverse causality, we find that firms with higher labor costs for older workers are associated with lower job exit age.
    Keywords: J26 ; J31 ; H55 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 18
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-01-29
    Description: The US and many European countries are witnessing substantial changes in the wage structure (Autor et al. 2006; Dustmann et al., 2009). Previous research has focused on changing returns to education and experience (Katz and Murphy, 1992), changes in the workforce composition (Lemieux, 2006), or the decline in unionization (DiNardo et al., 1996) as possible explanations for the observed changes. Until recently, little attention has been paid to the potential role of the returns to skills. However, the demand for different skills has shown vivid dynamics both within and between industries (Autor et al., 2003). A prominent idea in the more recent literature is that structural changes have depressed the relative demand for certain types of tasks performed on the job. A common finding is that returns to routine tasks have been decreasing over time, while returns to abstract tasks have been increasing. Yet, measuring and defining different types of task categories has been proven to be empirically difficult (Autor, 2013). In our study, we avoid potential measurement issues by using a skill approach as opposed to a task approach to characterize occupations. Instead of focusing on the tasks performed on the job, we examine the skills that individuals acquire during their education. For our empirical analysis we use the Sample of Integrated Labour Market Biographies (SIAB), a sample of social security records in Germany from 1975 through 2008. The information on skills taught in an occupation come from the BIBB/IAB Employment Survey, a representative worker survey. We construct occupation-specific skill portfolios and identify changes in the skill portfolios over the observed time period. We then match the skill portfolios to the corresponding occupations in the SIAB, thereby following the procedure utilized in Gathmann and Sch nberg (2010). In the descriptive analysis, we provide evidence that both the wage level across occupations and the skill portfolios within the same occupation have changed substantially over the observed time period. Then, we investigate whether the observed are related. Following Firpo et al. (2011), we run regressions of wage changes on the base period wage for each percentile of the within-occupation wage distribution and link the estimated intercepts and slopes to the skill portfolios of each occupation. Our results suggest that overall skills that used to be valuable in low-wage occupations have decreased in value, while the opposite has happened in high-wage occupations. Finally, we use a decomposition method based on the re-centered influence function regression approach by Firpo et al. (2007; 2009) to explicitly quantify the contribution of the skill portfolios to changes in the wage structure. Quantifying the contribution of single skills to the evolution of wages allows us to better understand why some occupations have experienced sharp decreases in wages, while others have experienced sharp increases. We thereby contribute to the recent literature on wage inequality. Finally, calculating skill prices can provide guidance for policy makers on how to design training curricula.
    Keywords: J24 ; J31 ; J40 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 19
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-05-23
    Description: The paper revisits the debate on trickle-down growth in view of the widely discussed evolution of the earnings and income distribution that followed a massive expansion of higher education. We propose a dynamic general equilibrium model to dynamically evaluate whether economic growth triggered by an increase in public education expenditure on behalf of those with high learning ability eventually trickles down to low-ability workers and serves them better than redistributive transfers. Our results suggest that, in the shorter run, low-skilled workers lose. They are better off from promoting equally sized redistributive transfers. In the longer run, however, low-skilled workers eventually benefit more from the education policy. Interestingly, although the expansion of education leads to sustained increases in the skill premium, income inequality follows an inverted U-shaped evolution.
    Keywords: H20 ; J31 ; O30 ; ddc:330
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  • 20
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-05-23
    Description: In this paper I analyze the attractiveness of a rank-order tournament if both market sides, employers and workers, can choose between several payment systems. I consider the self-selection of workers into different payment schemes, their effort provisions and the payment system choices of managers in a real effort laboratory experiment. Depending on the stage of the experiment, workers are either randomly tied to a manager or are sorted into the available payment schemes (a fixed wage, a piece-rate or a rank-order tournament) according to their preferences. When managers decide over the payment systems a cheap (low prize) tournament yields larger profits for the managers than a piece-rate contract. This is not the case for high prize tournaments. Furthermore, with worker choices I find a clear self-selection pattern: More productive workers self-selected into the variable payment schemes (piece-rate and tournament) and most workers prefer the safer option piece-rate to the tournament. Especially the low prize tournament is not chosen by many productive workers. As a consequence, even the low prize tournament does not yield larger profits than the piece-rate contract to managers. These findings show that in conditions in which a piece-rate payment is possible, rank-order tournaments are not simultaneously attractive for workers and employers.
    Keywords: C91 ; J31 ; D81 ; ddc:330
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  • 21
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-11-19
    Description: We build a theoretical model that incorporates unionization in the labor market into a Heckscher-Ohlin-Samuelson (HOS) framework to investigate the impact of unionization on the Stolper-Samuelson Theorem. To capture the American economy case, we assume that unskilled labor in the manufactured goods sector is unionized, and that sector is intensive in skilled labor, and that trade liberalization increases the relative price of manufactured goods. In the HOS model, trade liberalization induces a reallocation of production towards the sector that uses intensively the country's most abundant factor. The resulting change in relative labor demand impacts wage bargaining in the unionized sector, which, in turn, has a dampening effect on the Stolper-Samuelson effect. Moreover, wages of unionized workers are even less responsive to trade liberalization. Through traditional mandated-wages regressions, we show that skilled-wage differentials changes were less pronounced among more unionized sectors in the U.S. economy for the 1979-1990 period.
    Keywords: F16 ; J31 ; J51 ; ddc:330 ; Stolper-Samuelson Theorem ; wage bargaining ; unionization
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  • 22
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: In this paper, we study how wage mobility in the low-wage sector has changed in Western Germany between 1984 and 2004. Using German individual register data, we document a clear upward trend in the persistence of low-wage employment for both men and women. To explore whether the observed rise in persistence is accounted for by an increase in "genuine" state dependence or by compositional shifts of the low-wage sector, we model low-pay transitions by estimating a series of multivariate probit models. To address the initial conditions problem and the endogeneity of earnings attrition, our estimation approach accounts for the selection into low-wage employment and earnings retention. Using the estimates from the transition model, we determine the evolution of genuine state dependence which is defi ned as the average diff erence in low-pay transition probabilities conditional on being initially low and high paid, respectively. For men, our findings strongly argue against an upward trend of genuine state dependence, as the latter exhibits a fairly stationary development. This contrasts with women, whose evolution of genuine state dependence displays a slight upward trend.
    Keywords: C23 ; J31 ; L13 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: This paper reports the effects of training participation on wages and perceived job security for employees of different ages. Based on data from the German Socio-Economic Panel, results indicate that only younger workers benefit from training by an increase in wages, whereas older employees worries about losing their job are reduced. This observation can also be explained by the fact that goals of training courses are related to the age of participants. Moreover, I differentiate between workers who permanently and only occasionally participate in training. The results indicate that there seem to be decreasing marginal returns to training with respect to job security.
    Keywords: J24 ; J28 ; J31 ; ddc:330
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: What is the value of basic skills in the German labor market which until recently was considered to be strongly regulated but has gained flexibility in the last 15 years? To answer this question, we examine the relationship between adults' literacy, numeracy and earnings. We use data from the ALWA-ADIAB database, which is a test augmented survey linked to administrative data, making information on both skills and earnings most accurate. Preliminary results indicate that earnings are positively related to both types of skills. This relationship is more pronounced for numeracy than for literacy. Heterogenous results are found when running separate regressions for sub-groups, for instance by sex.
    Keywords: I21 ; J31 ; C83 ; ddc:330
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2016-02-08
    Description: In this paper I investigate the causal returns to education for different educational groups in Germany. I circumvent potential drawbacks of IV by employing a new method by Klein and Vella (2010). In this approach identification is not based on instruments but on the presence of heteroskedasticity. Using data from the German Socio-Economic Panel Study (SOEP) I find that the causal return to education is 8.5% for the entire sample, 2% for graduates from the basic school track and 11% for graduates from a higher school track. Across these groups the endogeneity bias in simple OLS regressions varies significantly. This confirms recent evidence in the literature on Germany. Various robustness checks support my findings.
    Keywords: C30 ; I21 ; J31 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: On the basis of a structural labor demand model employment effects of a minimum wage are estimated from a single cross-sectional wage distribution. The main contribution of the paper is to relax restrictive functional form assumptions of earlier papers by introducing more flexible semi-parametric censored quantile regressions to this framework. We apply the model to the sectoral minimum wage in the German construction sector. It can be shown that the semi-parametric estimates are within a plausible range: employment levels would be 4-5% higher without the minimum wage in the East where the minimum was binding. The effect for West Germany is markedly smaller, since the minimum wage level was lower in relation to the wage distribution. This semi-parametrically estimated structural approach can be a useful alternative to more popular panel data or difference-in-difference models when the necessary institutional variation or data base is either not available, or the necessary assumptions are problematic.
    Keywords: J23 ; J31 ; J38 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: This paper examines the determinants of gross labour flows in a context where modeling the migration decision as a wage-maximizing process may be inadequate due to regional wage rigidities that result from central wage bargaining. In such a context, the framework that has been developed by Borjas et al. (1992) on the selectivity of internal migrants with respect to skills has to be extended to allow migrants to move to regions that best reward their skills in terms of both wages and employment. The extended framework predicts skilled workers to be disproportionately attracted to regions with higher mean wages and employment rates as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed effects model and a GMM estimator show that these predictions hold, but only the effects for mean employment rates and employment inequality are robust and significant. The paper may thus be able to explain why earlier attempts to explain skill selectivity in Europe within a pure wage-based approach failed to replicate the US results.
    Keywords: R23 ; J31 ; J61 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: We use a 100% sample of social security panel micro data for estimating the effects of a minimum wage in the German construction sector. In 1997, a wage floor was introduced at different rates in West and East Germany. For analysing the impact of this natural experiment we conceptually follow a difference-in-differences approach. Since there is only qualitative information on working hours in the data, we propose a probabilistic method for identifying the treatment and control group. The effect of the minimum wage is investigated for wage growth and employment, the latter both from a labor demand and a labor supply perspective. According to our results, there are signi cant positive effects of the minimum wage on wage growth in both parts of the country. Although being lower in absolute terms, the bite of the minimum wage, however, is markedly higher in the East. The employment effects of the wage floor turn out to be different in both parts of the country. The minimum wage effect on the employment retention probability is negative and statistically highly significant in the East and positive, but statistically not significant in the West. When it comes to the inflow of workers into the sector we find a positive and statistically significant effect of the minimum wage in East Germany, but an insignifcant effect for West Germany. The highly differentiated results for the two parts of the country point to nonlinearities in the impact of a minimum wage. Rather than supporting clear-cut effects as in the pure neoclassical approach, our analysis tends to corroborate the relevance of market imperfections like the existence of monopsony power in the market.
    Keywords: J08 ; J42 ; J31 ; ddc:330
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: The enlargement of the European Union in 2004 caused a large migration wave from Central Europe to Ireland and the UK. This paper addresses the question whether such an emigration wave changes the wage distribution in the source country. In a theoretical model of a labor market I show that some groups of stayers gain, while others lose from emigration. This outcome depends on the degree of subsitutability between different groups of workers, as well as on skill distribution of emigrants. Using microdata from Lithuania, I simulate the post-2004 emigration wave based on the theoretical model and calculate the resulting changes in wages for different groups of workers. I nd that the wages of young workers increased by around 6% while the wages of older workers decrease by around 2%. The wage increase for young workers is the result of the supply shift: most of the emigrants were young, so that young workers who stay behind become a more scarce resource in the labor market. At the same time, the emigration of young workers decreases the labor demand for older workers, which results in a decrease of their wages.
    Keywords: F22 ; J31 ; O15 ; ddc:330 ; Emigration ; EU Enlargement ; European Integration ; Wage Distribution
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: I test some predictions of Gary Becker’s theory of taste discrimination regarding discrimination of foreigners by employers, co-workers and customers. I combine a 2% sample of the German working population and a 50% sample of German plants with low-level regional data, including the vote shares of three right-wing parties as a proxy for regional racism. The results show that (a) foreigner-native wage differentials rise with the share of right-wing voters, (b) the exact magnitude of the effects varies between skill groups and by gender, the largest effects being found for high-skilled men and women, (c) average employment shares of natives vary very little with the share of right-wing voters, (d) segregated firms become more common in manufacturing and construction when support for right-wing parties rises, while no effects are found for services and gastronomy and (e) the negative wage effects are strongest for foreigners working in services, while no effects are found in manufacturing and gastronomy. These results broadly confirm the predictions from taste discrimination.
    Keywords: J23 ; J31 ; J71 ; ddc:330 ; taste discrimination ; segregated firms ; wage differentials
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: We examine patterns of earnings volatility for male employees who are subject to statutory social security contributions in West Germany over the period 1986 - 2005. For this purpose, we analyse individual records covering highly reliable earnings biographies provided by the German Social Security Administration. We decompose earnings into permanent and transitory components and estimate parameters of the underlying variance-covariance structure of the earnings components model. This provides insights into the mechanics of earnings dynamics of the German labour market. We find evidence for increasing overall volatility which is predominantly driven by the permanent earnings component and therefore indicates increasing earnings inequality.
    Keywords: C23 ; D31 ; J31 ; ddc:330 ; Earnings Inequality ; Earnings Dynamics ; Variance Decomposition
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    ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2013-05-22
    Description: Der Beitrag untersucht den Einfluss des Alters und der Seniorität auf die Entwicklung und den Zusammenhang von Löhnen und Produktivität. Die ökonometrische Analyse von Betrieben des Verarbeitenden Gewerbes auf Grundlage des Linked-Employer-Employee-Datensatzes des IAB (LIAB) liefert Hinweise für einen positiven Einfluss des Anteils der mittleren Jahrgänge auf die betriebliche Produktivität, auch wenn die Effekte der Dauer der Betriebszugehörigkeit und andere Einflussfaktoren der betrieblichen Produktivität kontrolliert werden. Es bestätigte sich der umgekehrt u-förmige Verlauf des Alters-Produktivitätsprofils, der auch in anderen Ländern gefunden wurde. Mit Blick auf die Produktivitäts-Lohn-Relation im Altersverlauf erbrachte die Analyse deutliche Belege für ein ungleiches Muster der beiden Profile. Insbesondere die Altersgruppe der 41-50-Jährigen scheint im Vergleich zur Referenzgruppe der über 50-Jährigen aber auch zur Gruppe der 15-30-Jährigen deutlich unter Produktivität entlohnt zu werden. Für die Effekte der Seniorität sind die Ergebnisse weniger stark, dennoch erweisen sich die ein bis drei Jahre im Betrieb Beschäftigten als die Produktivsten, ohne dass sich dies in der Entlohnung widerspiegelte. Zusammen genommen spricht dies für geringe betriebliche Anreize, Ältere im Betrieb zu halten aber auch für reduzierte Ein- stellungschancen.
    Keywords: J14 ; J24 ; J31 ; ddc:330 ; Lohn ; Seniorität ; Demographie ; Linked-Employer-Employee Analyse
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: German
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-11-19
    Description: This paper analyzes the factors that explain earnings in levels and inequality in the urban areas of Bolivia, considering not only the usual individual characteristics (education, experience, gender, and ethnicity) but also firm characteristics. Given the information available at the firm level in the household surveys, two simple models were developed: one for independent workers (for which there is relatively detailed firm-level data), and the other for dependent workers (where firm variables were approximated by sector, size, and by the legal condition of the workers). The main econometric results show that: i) earnings regressions that include only individual variables present highly biased (overestimated) coefficients; ii) firm characteristics are fundamental factors for explaining earnings for independent workers, almost doubling R2 and explaining 45.5% of observed earnings inequality; and iii) firm proxies for dependent workers are also relevant; however, they explain wages at a lower percentage (11.8%), which may be due to non-detailed firm data and to the relatively higher importance of education for these workers. These new findings represent a contribution to the empirical literature on earnings determinants for urban Bolivia as well as to the vision of labor income and poverty problems.
    Keywords: J20 ; J23 ; J31 ; ddc:330 ; earnings (wages) ; firm characteristics ; inequality ; Bolivia ; Stadt ; Einkommen ; Bolivien
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-12-10
    Keywords: J20 ; J23 ; J31 ; ddc:330 ; Städtischer Arbeitsmarkt ; Lohn ; Bolivien
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-12-11
    Description: The urban labor market in Bolivia can be divided into 4 main sectors: 1) the public sector, 2) the formal private sector, 3) self-employed informals, and 4) informal workers. Although incomes are generally higher in the public sector and in the formal private sector, there is a strong preference in Bolivia for being informally self-employed. Two thirds of both men and women in urban areas respond that they would prefer to be self-employed rather than a salaried employee, and few see any advantage of becoming formal under the current institutional set-up. Currently, half of all economically active women in urban areas are informally self-employed, while this is the case for only one third of men. This implies that women are actually closer to the desired state than men, according to their own preferences. The real problem for women is not that they are informally self-employed, but rather that the profitability of their informal enterprises is low. On average, monthly profits of female micro-entrepreneurs is about 40% lower than those of male micro-entrepreneurs. This report uses quantitative information from about 600 micro and small enterprises to break down and understand this gender gap in profitability, and the results show that almost the whole gap is due to the fact that women operate their businesses on a much smaller scale (with less productive capital and fewer employees) than men. Why do female entrepreneurs operate on a smaller scale? One partial explanation is that they do not want to grow, because the business then would loose some of the features that make a micro-business particularly attractive for women (not to depend on others, to be able to care for children simultaneously, flexible working hours, and daily revenues). More important, however, is the lack of access to capital. Micro and small businesses operated by women have only a third of the operating capital of male operated businesses. There are two main reasons for this. First, women generally have fewer opportunities to accumulate capital, both because their household and reproductive work takes time away from paid work, and because they tend to earn less than men when they do work for money. Second, they do not have access to credit on reasonable terms. Access by itself is not the problem, as there is a very active micro-credit industry in Bolivia, but the terms are so unattractive that women try to avoid it if at all possible. The interest rates are high (20-40% per year); the group-lending practices increases the risk for the borrower, as they may end up paying other group members debt also; and they are typically required to assist at compulsory training courses twice a month, which is demanding for busy women running both a business and a household. Banks offer loans at more reasonable terms, but the requirements are difficult for micro-entrepreneurs to comply with (especially proof of a monthly pay check) and the risk is large as an entire house is often put up as collateral for even a small loan. Capital and credit is not a binding constraint in all sectors, however. On average, returns to additional capital investments are estimated to be relatively high (internal rates of return of over 20%) in the food sales sector, the textile clothing sector, and the camelid clothing sector. In contrast, they are estimated to be negative for grocery stores and the transport sector, which have experienced overinvestment to the extent that the returns to both capital and labor in these two sectors have been severely depressed. Even in the sectors where returns to capital are relatively high, a doubling of productive capital would not lead to a doubling of monthly profits. In fact, estimation results show strongly diminishing returns to scale, which means that micro-enterprises have little incentive to grow. Under the current institutional setup in Bolivia, it makes more economic sense to have several identical micro-enterprises in the family rather than one larger enterprise, and this is indeed often observed in practice. This is partly due to the characteristics of the sectors (for example, several small stores can capture a larger market due to the geographical dispersion), but it is mostly due to the tax-system, which becomes very demanding, both in terms of bureaucratic procedures and in terms of tax burden, as soon as an enterprise grows past a certain threshold. Under the current institutional set up, micro-entrepreneurs perceive no benefits from becoming formal, and indeed estimation results confirm that formality would lower the monthly profits of micro-enterprises (less than 3 workers and less than $1000 in operating capital) by 30-40%. Slightly bigger firms (3-5 workers), however, may benefit from getting a NIT and thus be able to offer facturas to the clients.
    Keywords: J21 ; J24 ; J31 ; J42 ; J48 ; J78 ; ddc:330 ; Informality ; Productivity ; Gender ; Bolivia
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-12-11
    Description: This paper estimates structural parameters of both a simple and an extended job separation model with the purpose of understanding constraints in the labor market in Bolivia. The results confirm the hypothesis that skilled labor is a scarce commodity in Bolivia, while unskilled labor is abundantly available. This implies that skilled employees shop around for alternative employment opportunities and quit their jobs when a better opportunity arises. The quit rate among skilled employees in the private sector is much higher than the quit rate among skilled employees in the public sector. The reverse is true for the lay-off rate, and together this suggests that the private sector has difficulties maintaining its skilled labor. The estimates of the wage sensitivity of job search effort parameters presented in this paper suggest that it would be difficult for the private sector to improve its capacity to retain skilled employees by increasing wages skilled employees in the private sector do not seem to reduce their on-the-job search in response to higher wages. The results are consistent with the hypothesis that the public sector in Bolivia, inflated by high levels of foreign aid (about 10% of GDP), may be detracting scarce human resources from local productive sectors, potentially jeopardizing the opportunity for sustainable development.
    Keywords: J62 ; J63 ; J64 ; J31 ; ddc:330 ; Mobility ; on-the-job search ; labor markets ; Bolivia
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-12-11
    Description: El estudio analiza y evalúa la situación actual de la educación inicial, primaria y secundaria bajo la actual estructura del sector público y la participación ciudadana, especialmente enfatizando la gestión educativa y el financiamiento de la educación, esto con el propósito de elaborar lineamientos para la profundización de la descentralización educativa. El proceso de descentralización educativa fue lento por la falta de experiencia y capacidad técnica y organizativa de las unidades y direcciones del Ministerio de Educación, Prefecturas y Municipios. Los resultados muestran que la gestión educativa se caracterizó por la reorientación de las funciones técnicas y administrativas, que fueron lentos debido a falta de un marco legal para reorganizar el marco institucional. Además, que los beneficios fueron positivos sólo cuando existan equipos de gestión que promueven la articulación de los actores involucrados, junta escolares, escuela, distrito escolar y municipio. En cuanto al financiamiento, el gasto del gobierno central está promoviendo levemente la equidad horizontal distributiva; en cambio, el gasto de los municipios está limitando el logro de dicha equidad. La distribución del gasto centralizado con criterios de localización geográfica de la unidad educativa está ocasionando desequilibrios verticales. El estudio propone lineamientos de descentralización que consideran tres niveles en la provisión de servicio educativo para garantizar un equilibrio entre los criterios de eficiencia, equidad e igualdad de oportunidades.
    Keywords: I21 ; I28 ; ddc:330 ; Educación ; Descentralización ; Bolivia
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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    La Paz: Institute for Advanced Development Studies (INESAD)
    Publication Date: 2018-12-11
    Description: El Programa Reforma Educativa ha contribuido a que el Sistema Educativo Boliviano consiguiera pasar de la perspectiva de la administración a la de la gestión. Bajo esta nueva visión, la gestión educativa depende de los actores involucrados, como padres de familia, maestros, autoridades municipales, entre otros, que tienen la responsabilidad de conducir, planificar y ejecutar un plan educativo. En ese sentido, con la finalidad de contar con una evaluación parcial de impacto de esta nueva modalidad de administración, el objetivo del estudio es evaluar la gestión educativa y analizar sus impactos en dos resultados educativos: acceso a la educación pública primaria y factores asociados al rendimiento escolar.
    Keywords: I21 ; I22 ; ddc:330 ; Reforma educativa ; Educación ; Bolivia
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 39
    Publication Date: 2018-12-11
    Description: Varios estudios realizados en Bolivia sugieren que los trabajadores calificados son escasos y que los puestos de trabajo en el sector público son tan atractivos que el sector privado no puede captar ni mantener los trabajadores calificados que necesita. Tal tendencia limita fuertemente el crecimiento económico y la reducción de la pobreza, puesto que el sector productivo tiene restricciones en la contratación eficaz de uno de sus factores de producción más importantes. El presente documento testea esta hipótesis a través de la estimación de modelos estructurales que permitan estudiar los patrones de comportamiento de búsqueda de trabajo de los empleados en Bolivia. Los resultados están consistentes con la hipótesis.
    Keywords: J62 ; J63 ; J64 ; J31 ; ddc:330 ; Movilidad ; mercado laboral ; búsqueda de trabajo ; Bolivia
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
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  • 40
    Publication Date: 2018-12-11
    Description: Las últimas dos décadas han visto mejoramientos sustanciales en la asistencia escolar de niñas en América Latina, hasta el punto que, en la mayoría de los países, más niñas que niños asisten a las escuelas. Sin embargo, Bolivia es una excepción, especialmente en áreas rurales donde la brecha educativa entre hombres y mujeres jóvenes todavía es significativa. El informe muestra que en 113 de los 314 municipios en Bolivia las niñas tienen menor acceso y/o permanencia en el sistema escolar que los niños, mientras que las niñas sólo tienen ventajes de acceso y/o permanencia en 2 municipios. En el resto de los municipios, los niños y las niñas tienen el mismo acceso y el mismo nivel de permanencia (medido a 15 años). La mayoría de los municipios con inequidades genéricas en contra de las niñas se encuentran en el altiplano en las zonas con mayor pobreza y mayor proporción de población Aymara. En términos absolutos, el problema de inasistencia de las niñas (y también de los niños) se concentra en cinco municipios grandes (Santa Cruz de la Sierra, La Paz, El Alto, Cochabamba y Sucre). En cuatro de estos cinco municipios hay problemas de desigualdad genérica en la permanencia escolar, sólo en el municipio de El Alto hay inequidad tanto en acceso como en permanencia.
    Keywords: J11 ; J13 ; ddc:330 ; Educación ; Permanencia ; Acceso ; Bolivia
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    Language: Spanish
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