Determinants of labor income and their impact on Bolivia’s economic growth: A theoretical review
DOI:
https://doi.org/10.61347/psa.v3i3.107Keywords:
Gender wage gap, growth, human capital, inequality, labor incomeAbstract
This article presents a bibliographic and critical review of the determinants of labor income, such as education level, age, gender wage gap, and employment structure, and their impact on economic growth, with emphasis on empirical evidence from Bolivia. Approximately forty verified academic sources were considered, integrating both classical and contemporary theories that explain how human capital formation, income inequality, female labor participation, and productive structure determine income levels and economic growth. The findings confirm that human capital remains the most important factor in explaining income; however, its impact is conditioned by informality, productive segmentation, and gender gaps. In Bolivia, returns to education are positive but unequal; inclusion and redistribution policies have not succeeded in correcting the structural asymmetries of the labor market. It is concluded that economic growth depends on policies that strengthen educational quality, equal opportunities, job formalization, and sectoral productivity.
Downloads
References
Arabiyat, T. S., Mdanat, M., & Samawi, G. (2020). Trade openness, inclusive growth, and inequality. The Journal of Developing Areas, 54(1), 121–133. https://is.gd/FGLi3M
Asada, H. (2024). Impact of public sector governance and human capital development on Myanmar’s economic growth. Economic Journal of Emerging Markets, 16(1), 33–49. https://doi.org/10.20885/ejem.vol16.iss1.art3
Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press. https://is.gd/JiCzxi
Bernal, E., Muriel, B., & Olivarez, G. (2015). Pobreza, ingresos laborales y trabajo en Bolivia (Development Research Working Paper Series, No. 09/2015). Institute for Advanced Development Studies. https://is.gd/QJ2L78
Bethencourt, C., & Kunze, L. (2020). Social norms and economic growth in a model with labor and capital income tax evasion. Economic Modelling, 86, 170–182. https://doi.org/10.1016/j.econmod.2019.06.009
Bongers, A. (2021). Economic growth and the functional distribution of income: A labor share Kuznets curve. Economics Bulletin, 41(1), 18–30. https://is.gd/849yxj
CEPAL. (2022). Panorama social de América Latina y el Caribe 2022: la transformación de la educación como base para el desarrollo sostenible. CEPAL. https://is.gd/ylEg42
Escalante, A. S. (2019). Retornos de la inversión en capital humano en Bolivia. Unidad de Análisis de Políticas Sociales y Económicas (UDAPE). https://is.gd/jfd6Gw
Fields, G. & Yoo, G. (2005). Falling labor income inequality in Korea’s economic growth: patterns and underlying causes. Review of Income and Wealth, 46(2), 139–159. https://doi.org/10.1111/j.1475-4991.2000.tb00952.x
Gasparini, L., Cruces, G., & Lustig, N. (2011). The rise and fall of income inequality in Latin America (CEDLAS Working Paper No. 118). https://is.gd/Fx2kCr
Giménez, D. L., Artemenko, K. M., Montiel, L. R., & Franco, M. R. (2016). Efectos de la educación en los ingresos: Una exploración de la teoría de Mincer aplicada a la realidad paraguaya. Población y desarrollo, (29). https://is.gd/oh79Uo
Heckman, J., Lochner, L., & Todd, P. (2006). Earnings functions, rates of return, and treatment effects: The Mincer equation and beyond. In E. Hanushek & F. Welch (Eds.), Handbook of the economics of education (Vol. 1, pp. 307–458). Elsevier. https://is.gd/CXZWLX
Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 45(1), 1–28. https://is.gd/I9dwRG
López, J., & Del Pino, G. (2025). Administración de bienes y su incidencia en el almacenamiento y control en el Gobierno Autónomo Descentralizado del cantón Pedro Carbo. Revista Científica Multidisciplinaria Arbitrada Yachasun, 9(17), 601–615. https://editorialibkn.com/index.php/Yachasun/article/view/738
Lu, H., & Jiang, Y. (2008). Labor market reform, income inequality and economic growth in China. China & World Economy, 16(6), 63–80. https://is.gd/64vtyG
Lu, M., & Gao, M. (2011). Labour market transition, income inequality and economic growth in China. International Labour Review, 150(1–2). https://doi.org/10.1111/j.1564-913X.2011.00107.x
Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42. https://doi.org/10.1016/0304-3932(88)90168-7
Mincer, J. (1974). Schooling, experience and earnings. National Bureau of Economic Research, cap. 3. https://is.gd/BtynKw
Muriel, B. (2010). Determinantes de los ingresos laborales en las zonas urbanas de Bolivia (Development Research Working Paper Series, No. 06/2010). Institute for Advanced Development Studies (INESAD). https://is.gd/5najxg
Pastpipatkul, P., Ko, H., & Dirth, G. (2025). Impact of government investment in human capital on labor force participation and income growth in Southeast Asian Countries. Economies, 13(9), 249. https://doi.org/10.3390/economies13090249
Pogosov, I., & Sokolovskaya, E. (2015). Factors of long-term economic growth: Ratio of capital and labor in the increase in the gross income of the economy, number of employed individuals, and labor productivity. Studies on Russian Economic, 26(6), 525–533. https://doi.org/10.1134/S1075700715060088
Romer, P. M. (1990). Endogenous technological change. The Journal of Political Economy, 98(5, Part 2), S71–S102. https://is.gd/68EXj1
Sugianto, B., Ratnawati, T., & Rahmiyati, N. (2024). The effect of asset management, private investment and government spending on labor absorption, economic growth and community welfare with income disparity as a moderating variable across districts in East Kalimantan. International Journal of Economics, Business and Accounting Research, 8(6), 851–869. https://doi.org/10.55214/25768484.v8i6.2174
Troncoso, E. (2020). Women’s participation in the Brazilian labour market in the context of economic growth with income distribution (2004-2013). Panoeconomicus, 67(3), 433–447. https://doi.org/10.2298/PAN2003433T
Urquidi, M., & Chalup, M. (2023). The Gender Earnings Gap in Latin America and the Caribbean: An analysis of its components. Inter-American Development Bank. https://doi.org/10.18235/0004785
Urquidi, M., Valencia, H., & Durand, G. (2020). The gender earning gap in bolivia: an analysis from 1993 to 2018. Inter-American Development Bank. http://dx.doi.org/10.18235/0002775
Yáñez, E. (2004). ¿Qué explica la desigualdad en la distribución del ingreso en las áreas urbanas de Bolivia? Un análisis a partir de un modelo de microsimulación. Análisis Económico, 19, 53–77. Unidad de Análisis de Políticas Sociales y Económicas (UDAPE). https://is.gd/98XRRl
Zhang, C. (2024). Dynamic analysis of progressive income taxation and economic growth with endogenous labor supply and public goods. Interdisciplinary Journal of Labor and Economics, 17(2), 42–53. https://is.gd/PdeAk3
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Guissela Guzmán Olivarez
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
