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Social spending and income redistribution in Argentina during the 2000s: The rising noncontributory pensions

Author

Listed:
  • Nora Lustig

    (Stone Center for Latin American Studies, Department of Economics, Tulane University, Commitment to Equity Institute (CEQI).)

  • Carola Pessino

    (Department of Economics, Universidad del CEMA)

Abstract

Between 2003 and 2009, Argentina’s social spending as a share of GDP increased by 7.6 percentage points. 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 introduction of a new noncontributory pension program – known as “the pension moratorium” – in 2004. 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.

Suggested Citation

  • Nora Lustig & Carola Pessino, 2013. "Social spending and income redistribution in Argentina during the 2000s: The rising noncontributory pensions," Commitment to Equity (CEQ) Working Paper Series 05, Tulane University, Department of Economics, revised Aug 2013.
  • Handle: RePEc:tul:ceqwps:05
    as

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    File URL: http://repec.tulane.edu/RePEc/ceq/ceq05.pdf
    File Function: Revised version, 2013
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    social spending; benefit incidence; inequality; poverty; Argentina;
    All these keywords.

    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

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