The impact of minimum wage raises on the Bolivian labor market

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Since 2006, Bolivia has experienced sustained growth that prompted the Bolivian government to implement several redistributive policies, including an annual increase to the minimum wage. However, over the last four years, these raises have been well above inflation and GDP growth rates. A team of local researchers set out to identify the potential effects of the minimum wage increases on wage and employment of different populations, as well as the effect on informality and self-employment levels. The team’s analysis indicates that the minimum wage policy has introduced biases into the labor market that negatively affect vulnerable workers, particularly women, in terms of wellbeing and employment conditions.
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