Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions. Extended Version
AbstractBetween 2003 and 2009, Argentina’s social spending as a share of GDP increased by 7.6 percentage points. Marginal benefit incidence analysis for 2003, 2006, and 2009 suggests that the contribution of cash transfers to the reduction of disposable income inequality and poverty rose markedly between 2006 and 2009 primarily due to the launching of a noncontributory pension program – the pension moratorium – in 2004. Noncontributory pensions as a share of GDP rose by 2.2 percentage points between 2003 and 2009 and entailed a redistribution of income to the poor, and from the formal sector pensioners with above minimum pensions to the beneficiaries of the pension moratorium. The redistributive impact of the expansion of public spending on education and health was also sizeable and equalizing, but to a lesser degree. An assessment of fiscal funding sources puts the sustainability of the redistributive policies into question, unless nonsocial spending is significantly cut.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 276.
Length: 31 pages
Date of creation: Nov 2012
Date of revision:
social spending; benefit incidence; inequality; poverty; Argentina.;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-01-07 (Economics of Ageing)
- NEP-ALL-2013-01-07 (All new papers)
- NEP-LAM-2013-01-07 (Central & South America)
- NEP-LTV-2013-01-07 (Unemployment, Inequality & Poverty)
- NEP-PBE-2013-01-07 (Public Economics)
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.:
- Nora Lustig & Carola Pessino, 2012.
"Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions,"
1221, Tulane University, Department of Economics.
- Nora Lustig & Carola Pessino, 2012. "Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions," CEMA Working Papers: Serie Documentos de Trabajo. 499, Universidad del CEMA.
- Nora Lustig & Carola Pessino, 2013. "Social Spending and Income Redistribution in Argentina during the 2000s: The Rising Role of Noncontributory Pensions," Commitment to Equity (CEQ) Working Paper Series 1305, Tulane University, Department of Economics.
- Leonardo Gasparini & Guillermo Cruces, 2010. "Las asignaciones universales por hijo en Argentina: Impacto, discusión y alternativas," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 145-186, January-D.
- 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.
- 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.
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