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Crisis and Recovery in Argentina: Labor market, poverty, inequality and pro-poor growth dynamics

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  • Melanie Khamis

    ()
    (London School of Economics and Political Science, Development Studies Institute, London)

Abstract

This paper explores the labor market, poverty, inequality and pro-poor growth dynamics in the recent economic crisis and recovery in Argentina. In the labor market it is possible to see the diverging experience of the economic crisis and recovery. For instance, the unemployed were more likely to find employment in the informal sector than in the formal sector. In terms of economic sectors it seems that certain labor-intensive, dynamic, low-skilled sectors such as manufacturing, other services, construction and retail contributed most to the movement between the different labor force states of employment, unemployment and inactivity. Policy responses in the labor market to poverty and inequality increases from the economic crisis were implemented through government transfers, in particular the workfare program Plan Jefes y Jefas. The pro-poor features of the early economic recovery period were mainly accounted for by these government transfers. However, at later stages of recovery income increases of the poor are less attributed to government transfers and more due to the pro-poor pattern of growth itself.

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Bibliographic Info

Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 135.

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Length: 34 pages
Date of creation: 18 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:135

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Keywords: Economic crisis and recovery; poverty; informal labor market; workfare programs; Argentina;

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  1. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  2. Herrera, Javier & Rosas Shady, Gerardo David, 2003. "Labor Market Transitions in Peru," Economics Papers from University Paris Dauphine 123456789/4515, Paris Dauphine University.
  3. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
  4. Bosch, Mariano & Maloney, William, 2005. "Labor market dynamics in developing countries: comparative analysis using continuous time Markov processes," Policy Research Working Paper Series 3583, The World Bank.
  5. 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.
  6. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  7. Leonardo Gasparini & Mariana Marchionni & Walter Sosa Escudero, 2000. "Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires," Department of Economics, Working Papers 025, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  8. McKenzie, David J, 2004. "Aggregate Shocks and Urban Labor Market Responses: Evidence from Argentina's Financial Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 719-58, July.
  9. 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.
  10. Stephan Klasen & Silke Woltermann, 2005. "The impact of demographic dynamics on economic development, poverty and inequality in Mozambique," Departmental Discussion Papers 126, University of Goettingen, Department of Economics.
  11. Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
  12. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
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