PMMA-12869 Evidence on the Impacts of Minimum Wage on Labor Market Outcomes: The Case of Bolivia


Economic theory suggests that minimum wages may lead to unemployment; nevertheless, empirical evidence in developed economies stays ambiguous. Evidence from developing countries is even more heterogenous due to the low law enforcement and weaker labor market institutions. Thus, our aim is to assess the impact of minimum wage increases on labor market outcomes in Bolivia, a country characterized by weak law compliance and high informality. Our identification strategy exploits differences in exposure to minimum wage increases across subsets of population for the period 2006-2013. Our results show positive and significant effects over real wages for men with no effects on employment, informalization or hours worked. Furthermore, we find evidence of gender discrimination since women are prone to suffer unemployment and informalization while not benefiting from higher real wages as men do.


Project leader: Marcelo Nicolas Claure Ramirez

Project researchers: Christian Valencia | Alejandra Leyton | Karenth Vanessa Sánchez Bohórquez

Scientific mentors: Jorge Davalos

Journal publication

Authors Co-Authors Title of paper Title of Economic Review Bibliographic references
Jorge Davalos Marcelo Nicolas Claure Ramirez, Alejandra Leyton The gender effects of the minimum wage under weak compliance with labour regulations: the case of Bolivia Applied Economics

Published online (May 2020)

Working Papers

Title Modified Size Comments Recommendations
Evidence of the impacts of minimum wages on labor market outcomes: The case of Bolivia 2017-02-22 697.71kB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
The impact of minimum wage raises on the Bolivian labor market 2017-02-15 343.04kB 0 0

Final report

Title Modified Size Comments Recommendations
2016-09-02 756.65KB 0 0


Title Modified Size Comments Recommendations
2016-04-29 791.7KB 1 1

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