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

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Author Info
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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Publisher 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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Related research
Keywords: Economic crisis and recovery; poverty; informal labor market; workfare programs; Argentina;

Find related papers by JEL classification:
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
O49 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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References listed on IDEAS
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  1. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank. [Downloadable!]
  2. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January. [Downloadable!] (restricted)
    Other versions:
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. 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.
  6. 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. [Downloadable!]
  7. Galasso, Emanuela & Ravallion, Martin, 2003. "Social protection in a crisis - Argentina's Plan Jefes y Jefas," Policy Research Working Paper Series 3165, The World Bank. [Downloadable!]
    Other versions:
  8. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
    Other versions:
  9. Javier Herrera & Gerardo David Rosas Shady, 2003. "Labor Market Transitions in Peru," Working Papers DT/2003/14, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  10. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, Oxford University Press, vol. 5(1), pages 57-82, January.
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