- This project in Bolivia strengthened job matching services, on-the-job training, and temporary stipends, with targeted support for women and people with disabilities.
- Evaluations show expanded access to formal employment, especially among those who previously faced the greatest barriers and relied on informal networks.
In Bolivia, finding a stable job has often depended on family and friends. As recently as 2017, 8 of 10 Bolivian workers were employed informally. Those workers rely on these personal networks to hear about job opportunities. But people who don’t have those connections—especially women, young people, and persons with disabilities—have a much harder time accessing stable employment.
Breaking this cycle is not easy. But through the Program to Support Employment (PAE II), Bolivia partnered with the Inter-American Development Bank (IDB) to show that well-designed public policies and training to match talent with opportunities can make a real difference in helping people find good jobs.
Connecting People to Jobs
Many job seekers in Bolivia faces a double barrier. First, they lack the formal work experience typically required by employers. Second, they often lack access to more formal job networks that can open doors in the labor market. These challenges have kept millions locked out of stable jobs that provide social security and legal protections.
Women face additional obstacles, particularly in sectors traditionally dominated by men, while young people struggle to make the transition from school to work. People with disabilities encounter structural barriers that make sustained employment even more difficult.
To tackle these challenges, PAE II looked to strengthen and modernize the country’s public employment service. The idea was simple but powerful: help job seekers connect directly with formal employers and give them a chance to gain real work experience. The program provided:
- Employment intermediation services to match job seekers with vacancies in formal firms.
- On-the-job training that enabled participants to learn while working.
- Temporary stipends equivalent to one or two minimum wages to support participants during training.
Putting inclusion at the center, and recognizing that one-size-fits-all solutions do not work, PAE II deliberately addressed the specific barriers faced by people who are often left behind:
- Women entering male-dominated sectors and people with disabilities received extended training of up to six months along with personalized follow-up.
- Childcare subsidies helped more women participate in training and job placements.
- Youth employment pilots helped young people gain their first formal work experience, smoothing the transition from school to work.
PAE II also built on lessons from an earlier phase of the program by improving how services are delivered, introducing better profiling tools, vocational guidance, upgraded information systems, and more active outreach to employers.
Results that Last
These design choices mattered—and the results show it. For example:
- Over the life of the program, more than 72,000 people benefited from job intermediation services.
- Over 27,000 participants completed on-the-job training.
Crucially, these improvements were not short-lived. The positive effects lasted up to two years after training, demonstrating that the program helped people enter—and stay in—the formal labor market.
The biggest gains were among groups that had previously faced the steepest barriers, as documented in an impact evaluation:
- Women’s formal job placement rates rose from 42 to 51%, with especially strong income gains of 11.7%.
- Participants in on-the-job training were 7.7 percentage points more likely to secure formal employment and earned 9.5% more than similar job seekers who did not participate.
The program also advanced inclusion outcomes for others that have difficulty breaking into the job market, according to another study:
- A youth pilot eased school‑to‑work transitions, with most participants gaining an additional five months of in‑company experience after financing ended.
- Dropout rates and employment gaps were reduced among participants with disabilities, and 37.2% of those participants obtained formal jobs.
What We Learned
PAE II was implemented during the COVID-19 pandemic, which disrupted hiring and limited mobility. But the program adapted quickly and showed how restructuring some pilot components and strengthening coordination among institutions could keep services running. Two other key lessons from the program stand out:
- Active labor-market policies are powerful tools to offset the impact of economic shocks by reconnecting people to formal jobs. PAE II beneficiaries were 15 percentage points more likely to get hired than non-participants.
- Inclusion must be intentionally designed into job programs by tailoring support actions for women, youth, and people with disabilities who face structural barriers.
Why This Matters
By strengthening its public employment service and testing inclusive solutions, Bolivia expanded access to formal jobs for people who previously depended on personal networks—or had no access to such jobs at all. The program did more than place people in jobs: it helped them build lasting pathways into the formal economy.
In a region where informality remains one of the biggest development challenges, Bolivia’s experience shows that with the right tools, partnerships, and a focus on inclusion, good jobs can become more accessible—and lasting—for everyone.