A comparison of wage dynamics in two Latin American countries: different policies, different outcomes

Fecha

2017

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Universidad EAFIT

Resumen

This article explores the variations in the wage distribution in two Latin American countries, Bolivia and Colombia, which have had different economic policies in recent years -- Using data from household surveys, a decomposition of the wage distribution in each country using Functional Principal Component Analysis is conducted -- The results suggest that Bolivia, which has taken left-wing economic policies, has experienced a general increase in wages, especially benefiting the least skilled workers and the informal sector -- On the other hand, the wage distribution in Colombia, whose economic policy has been focused on free-market principles, has become more concentrated around the median wage, mainly due to changes in the formal sector wages

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Palabras clave

Análisis de Componentes Principales, Análisis de Componentes Principales Funcionales (FPCA), Desigualdad de salarios

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