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Social Protection to the Informal Sector: The Role of Minimum Wage and Income Transfer Policies

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Listed:
  • Fernando Alberto Groisman
  • Albano Blas Vergara
  • Analía Calero
  • Julia Liniado
  • María Eugenia Sconfienza
  • Maria Soledad Cubas
  • Santiago Boffi

Abstract

The objective of this study is to examine the impact that changes in minimum wage and the main income transfer programs 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 program – called the Universal Child Allowance – has benefited some 40 percent 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 Alberto Groisman & Albano Blas Vergara & Analía Calero & Julia Liniado & María Eugenia Sconfienza & Maria Soledad Cubas & Santiago Boffi, 2015. "Social Protection to the Informal Sector: The Role of Minimum Wage and Income Transfer Policies," Working Papers PMMA 2015-10, PEP-PMMA.
    • Handle: RePEc:lvl:pmmacr:2015-10
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    More about this item

    Keywords

    Informality; Social Protection; and Minimum Wage;
    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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