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Labor Informality Effects of a Poverty-Alleviation Program

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Author Info

  • Leonardo Gasparini

    ()
    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

  • Francisco Haimovich

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

  • Sergio Olivieri

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

Abstract

In the midst of a serious macroeconomic crisis Argentina implemented a large social program – the Programa Jefes de Hogar (PJH) – that provides cash transfers to unemployed household heads meeting certain criteria. In practice, giving the difficulties in monitoring informal jobs, the unemployment requirement of the PJH would imply a disincentive for the program participants to search for a formal job. By applying matching techniques we evaluate the empirical relevance of this prediction during the period of strong economic growth that followed the crisis. We find some evidence on the informality bias of the PJH when the value of the transfer was relatively high compared to wages in the formal labor market.

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Bibliographic Info

Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0053.

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Length: 35 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:dls:wpaper:0053

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Postal: Calle 48 No555 - La Plata (1900)
Phone: 21- 1466
Fax: 54-21-25-9536
Web page: http://cedlas.econo.unlp.edu.ar/
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Related research

Keywords: informality; employment; Argentina; evaluation; program; Jefes;

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References

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  1. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND briefs 172, International Food Policy Research Institute (IFPRI).
  2. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
  3. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
  4. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI).
  5. Ravallion, Martin, 2008. "Evaluating Anti-Poverty Programs," Handbook of Development Economics, Elsevier.
  6. Orazio Attanasio & Emla Fitzsimons & Ana Gomez & Diana Lopez & Costas Meghir & Alice Mesnard, 2006. "Child education and work choices in the presence of a conditional cash transfer programme in rural Colombia," IFS Working Papers W06/01, Institute for Fiscal Studies.
  7. Emanuela Galasso & Martin Ravallion, 2004. "Social Protection in a Crisis: Argentina's Plan Jefes y Jefas," World Bank Economic Review, World Bank Group, vol. 18(3), pages 367-399.
  8. Galasso, Emanuela & Ravallion, Martin & Salvia, Agustin, 2001. "Assisting the transition from workfare to work : a randomized experiment," Policy Research Working Paper Series 2738, The World Bank.
  9. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  10. Martin Ravallion & Emanuela Galasso & Teodoro Lazo & Ernesto Philipp, 2005. "What Can Ex-Participants Reveal about a Program’s Impact?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  11. Lucas Ronconi & Juan Sanguinetti & Sandra Fachelli & Virginia Casazza & Ignacio Franceschelli, 2006. "Poverty and Employability Effects of Workfare Programs in Argentina," Working Papers PMMA 2006-14, PEP-PMMA.
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Citations

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Cited by:
  1. Camacho, Adriana & Conover, Emily & Hoyos, Alejandro, 2013. "Effects of Colombia's social protection system on workers'choice between formal and informal employment," Policy Research Working Paper Series 6564, The World Bank.
  2. Raymundo M. Campos-Vazquez & Melissa A. Knox, . "Social Protection Programs and Employment: The Case of Mexico's Seguro Popular Program," Working Papers UWEC-2011-10, University of Washington, Department of Economics.
  3. Leonardo Gasparini & Guillermo Cruces, 2010. "Las Asignaciones Universales Por Hijo. Impacto, Discusión y Alternativas," CEDLAS, Working Papers 0102, CEDLAS, Universidad Nacional de La Plata.
  4. Almeida, Rita K. & Galasso, Emanuela, 2010. "Jump-starting Self-employment? Evidence for Welfare Participants in Argentina," World Development, Elsevier, vol. 38(5), pages 742-755, May.
  5. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés-Serra, 2011. "Does Expanding Health Insurance Beyond Formal-Sector Workers Encourage Informality?: Measuring the Impact of Mexico's Seguro Popular," IDB Publications 81001, Inter-American Development Bank.
  6. Ricardo Bebczuk, 2009. "SME Access to Credit in Guatemala and Nicaragua: Challenging Conventional Wisdom with New Evidence," CEDLAS, Working Papers 0080, CEDLAS, Universidad Nacional de La Plata.
  7. Schröter, Lars, 2008. "Die Rolle des informellen Sektors in der wirtschaftlichen Entwicklung Argentiniens
    [The role of the informal sector in the economic development of Argentina]
    ," MPRA Paper 11661, University Library of Munich, Germany, revised 14 Nov 2008.
  8. Mariano Bosch & Marco Manacorda, 2012. "Social Policies and Labor Market Outcomes in Latin America and the Caribbean: A Review of the Existing Evidence," CEP Occasional Papers 32, Centre for Economic Performance, LSE.

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