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Labor informality bias of a poverty-alleviation program in Argentina

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Abstract

In 2002, 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, the difficulty in monitoring the unemployment requirement for informal (unregistered) workers 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 cash transfer was relatively high compared to wages in the formal labor market.

Suggested Citation

  • Leonardo Gasparini & Francisco Haimovich & Sergio Olivieri, 2009. "Labor informality bias of a poverty-alleviation program in Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 12, pages 181-205, November.
    • Handle: RePEc:cem:jaecon:v:12:y:2009:n:2:p:181-205
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    File URL: https://ucema.edu.ar/publicaciones/download/volume12/gasparini.pdf
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    1. repec:idb:brikps:7203 is not listed on IDEAS
    2. Gerard, François & Gonzaga, Gustavo, 2016. "Informal Labor and the Efficiency Cost of Social Programs: Evidence from the Brazilian Unemployment Insurance Program," CEPR Discussion Papers 11485, C.E.P.R. Discussion Papers.
    3. 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.
    4. Garcia, D & Granda, C, 2019. "Informalidad, ciclos económicos y política fiscal: una exploración de los nexos," Documentos de trabajo - Alianza EFI 18984, Alianza EFI.
    5. Armando Barrientos & Daniele Malerba, 2020. "Social assistance and inclusive growth," International Social Security Review, John Wiley & Sons, vol. 73(3), pages 33-53, July.
    6. Guillermo Cruces & Marcelo Bérgolo, 2013. "Informality and Contributory and Non-Contributory Programmes. Recent Reforms of the Social-Protection System in Uruguay," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 531-551, September.
    7. 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).
    8. Santiago Garganta & Leonardo Gasparini & Mariana Marchionni, 2017. "Cash transfers and female labor force participation: the case of AUH in Argentina," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    9. Rafael P. Ribas, 2020. "Liquidity constraints, spillovers, and entrepreneurship: evidence from a cash transfer program," Small Business Economics, Springer, vol. 55(4), pages 1131-1158, December.
    10. Ghorpade,Yashodhan & Franco Restrepo,Camila & Castellanos Rodriguez,Luis Eduardo, 2024. "Social Protection and Labor Market Policies for the Informally Employed : A Review of Evidence from Low- and Middle-Income Countries," Social Protection Discussion Papers and Notes 188471, The World Bank.
    11. Garganta, Santiago & Gasparini, Leonardo, 2015. "The impact of a social program on labor informality: The case of AUH in Argentina," Journal of Development Economics, Elsevier, vol. 115(C), pages 99-110.
    12. Bryan, Gharad & Chowdhury, Shyamal & Mobarak, Ahmed Mushfiq & Morten, Melanie & Smits, Joeri, 2021. "Encouragement and Distortionary Effects of Conditional Cash Transfers," IZA Discussion Papers 14326, Institute of Labor Economics (IZA).
    13. Rafael P. Ribas, 2014. "Liquidity Constraints, Informal Financing, and Entrepreneurship: Direct and Indirect Effects of a Cash Transfer Programme," Working Papers 131, International Policy Centre for Inclusive Growth.
    14. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications - Books, The World Bank Group, number 21365, December.
    15. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    16. Bernardus Van Doornik & David Schoenherr & Janis Skrastins, 2018. "Unemployment Insurance, Strategic Unemployment and Firm-Worker Collusion," Working Papers Series 483, Central Bank of Brazil, Research Department.

    More about this item

    Keywords

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

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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