Understanding the Growth of the Middle Class in Bolivia
In this paper we aim to disentangle how sectoral economic growth affects the growth of the middle class size using state-level data of Bolivia from 2000 to 2017, a country with limited data, breaking the three main economic activities into subsectors aiming for more specific results. By means of a Bayesian hierarchical longitudinal model for small samples, we find that the commerce and services sectors have the biggest impact, even though mining and agriculture also have a positive effect on the increase of the middle class in Bolivia. Our results also suggest that both formality and public social investment have a significant, yet smaller, effect.
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| Language: | English |
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Inter-American Development Bank
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| Subjects: | Poverty, Poverty Reduction, Economic Development, Informal Labor, Economic Expansion, Middle Class, C23 - Panel Data Models • Spatio-temporal Models, D63 - Equity Justice Inequality and Other Normative Criteria and Measurement, O41 - One Two and Multisector Growth Models, I32 - Measurement and Analysis of Poverty, economic growth;Informality;middle class, |
| Online Access: | http://dx.doi.org/10.18235/0003407 https://publications.iadb.org/en/understanding-growth-middle-class-bolivia |
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