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The Role of Minimum Wage and Income Transfer Policies on the Labour Market: The Case of Argentina

In: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting

Author

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  • Fernando Groisman

Abstract

The objective of this study is to examine the impact that changes in minimum wage and the main income transfer programmes have had on the economic participation of the population and the informal sector in Argentina. The magnitude and importance that both policies have had in the Argentine case makes it possible carry out an in-depth analysis of these topics. In effect, minimum wage was periodically modified between 2002 and 2014 to be among the highest in the Latin American region while the mentioned income transfer programme – called the Universal Child Allowance – has benefited some 40 per cent of children residing in the country since its implementation. The obtained evidence suggests that modifications to minimum wage did not produce adverse effects on employment or have a substantial impact on the probabilities of entering the informal sector. Regarding the income transfers, it was possible to confirm that it did not encourage adults in beneficiary households to become economically inactive.

Suggested Citation

  • Fernando Groisman, 2016. "The Role of Minimum Wage and Income Transfer Policies on the Labour Market: The Case of Argentina," Research on Economic Inequality, in: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, volume 24, pages 155-180, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520160000024007
    DOI: 10.1108/S1049-258520160000024007
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    More about this item

    Keywords

    Informality; social protection; minimum wage; J2; J4; J6;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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