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Labor Informality Effects of a Poverty-Alleviation Program

Author

Listed:
  • 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.

Suggested Citation

  • Leonardo Gasparini & Francisco Haimovich & Sergio Olivieri, 2007. "Labor Informality Effects of a Poverty-Alleviation Program," CEDLAS, Working Papers 0053, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0053
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    File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas53.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Rafael Novella & Laura Ripani & Claudia Vazquez, 2021. "Conditional cash transfers, female bargaining power and parental labour supply," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 422-436, March.
    2. Ana Iturriza & Arjun S. Bedi & Robert Sparrow, 2011. "Unemployment Assistance and Transition to Employment in Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 59(4), pages 811-837.
    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. Raymundo M. Campos-Vázquez & Melissa A. Knox, 2013. "Social Protection Programs and Employment: The Case of Mexico's Seguro Popular Program," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 403-448, July-Dece.
    5. 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.
    6. Adriana Camacho & Emily Conover & Alejandro Hoyos, 2014. "Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment," The World Bank Economic Review, World Bank, vol. 28(3), pages 446-466.
    7. María del Pilar Casal & Bradford L. Barham, 2013. "Women’s Mobility in the Argentine Labour Market," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 59, pages 88-125, January-D.
    8. Aterido, Reyes & Hallward-Driemeier, Mary & Pagés, Carmen, 2011. "Does Expanding Health Insurance Beyond Formal-Sector Workers Encourage Informality?: Measuring the Impact of Mexico's Seguro Popular," IDB Publications (Working Papers) 4551, Inter-American Development Bank.
    9. 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.
    10. Rafael Novella & Laura Ripani & Guillermo Cruces & Maria Laura Alzuá, 2012. "Conditional Cash Transfers, Female Bargaining Power and Parental Labour Supply," IDB Publications (Working Papers) 78223, Inter-American Development Bank.
    11. François Gerard & Gustavo Gonzaga, 2013. "Informal Labor and the Cost of Social Programs: Evidence from 15 Years of Unemployment Insurance in Brazil," Textos para discussão 608, Department of Economics PUC-Rio (Brazil).
    12. World Bank, 2015. "The Impact of Targeted Social Assistance on Labor Market in Georgia," World Bank Publications - Reports 22502, The World Bank Group.
    13. Bosch, Mariano & Manacorda, Marco, 2012. "Social policies and labor market outcomes in Latin America and the Caribbean: a review of the existing evidence," LSE Research Online Documents on Economics 58003, London School of Economics and Political Science, LSE Library.
    14. 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.

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    More about this item

    Keywords

    informality; employment; Argentina; evaluation; program; Jefes;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics

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