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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) - Universidad Nacional de La Plata)
Francisco Haimovich (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata)
Sergio Olivieri (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata)

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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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File URL: http://www.depeco.econo.unlp.edu.ar/cedlas/pdfs/doc_cedlas53.pdf
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Publisher Info
Paper provided by CEDLAS, Universidad Nacional de La Plata in its series 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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Related research
Keywords: informality employment Argentina evaluation program Jefes

Find related papers by JEL classification:
I3 - Health, Education, and Welfare - - Welfare and Poverty
D3 - Microeconomics - - Distribution
D6 - Microeconomics - - Welfare Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Attanasio, Orazio & Fitzsimons, Emla & Gomez, Ana & Lopez, Diana & Meghir, Costas & Mesnard, Alice, 2006. "Child Education and Work Choices in the Presence of a Conditional Cash Transfer Programme in Rural Colombia," CEPR Discussion Papers 5792, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Lucas Ronconi & Juan Sanguinetti & Sandra Fachelli & Virginia Casazza & Ignacio Franceschelli, 2006. "Poverty and Employability Effects of Workfare Programs in Argentina," Cahiers de recherche PMMA 2006-14, PEP-PMMA. [Downloadable!]
  3. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND briefs 172, International Food Policy Research Institute (IFPRI). [Downloadable!]
  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). [Downloadable!]
    Other versions:
  5. Ravallion, Martin, 2005. "Evaluating anti-poverty programs," Policy Research Working Paper Series 3625, The World Bank. [Downloadable!]
  6. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI). [Downloadable!]
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