The document seeks to evaluate the effectiveness of Bolivia’s labor market institutions, particularly the National Employment Emergency Plan (PLANE, Plan Nacional de Empleo de Emergencia). This being said, the researchers claim that current labor market regulations and labor market programs do not help to increase the size of Bolivia’s formal market. This can be attributed to the country’s rigid labor markets and labor policies, which are mainly based on temporary employment programs. Furthermore, the document suggests that given the country’s high level of informality, active protection policies, specifically designed to increase the productivity/employability of vulnerable populations, must be introduced in order to battle the country’s rising unemployment levels.

The document is organized as follows. After a brief introduction, section two presents a diagnostic of the nature and the consequences of unemployment in Bolivia. Meanwhile, section three presents a review of labor market regulation and programs introduced in the country, whereas chapter four evaluates the impact of Bolivia’s public employment scheme, the National Employment Emergency Plan (PLANE, Plan Nacional de Empleo de Emergencia), on consumption and employability. Finally, section five provides some concluding arguments.

To conclude the authors claim that:

• labor market regulations and labor market programs may be crucial instruments for increasing the size of the labor market
• Bolivia’s labor market regulations are among the most rigid in the region
• Bolivia’s labor policies have been based on temporary employment programs, which usually do not have any impact on the productivity/employability of beneficiaries
• although PLANE was successful as a consumption-smoothing scheme, it appears to have no effects on employment or wages in Bolivia

The document is available in English