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Design without delivery: analysing and rethinking social protection in Honduras

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  • Andrés Ham

Abstract

We analyse the disconnect between the intended design and actual outcomes of Honduras's social protection system. The current framework results in low coverage rates and limited redistribution, and imposes an implicit tax on formal activity. It also discourages productivity-enhancing decisions by workers and firms, contributing to the persistence of high informality and inequality. To address these issues and fulfil the objectives of social protection, we propose reforms which aim to expand coverage, improve equity, and strengthen incentives for workers and firms to comply with norms.

Suggested Citation

  • Andrés Ham, 2025. "Design without delivery: analysing and rethinking social protection in Honduras," WIDER Working Paper Series wp-2025-101, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-101
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    References listed on IDEAS

    as
    1. Ham, Andrés & Michelson, Hope C., 2018. "Does the form of delivering incentives in conditional cash transfers matter over a decade later?," Journal of Development Economics, Elsevier, vol. 134(C), pages 96-108.
    2. Gindling, T.H. & Terrell, Katherine, 2009. "Minimum wages, wages and employment in various sectors in Honduras," Labour Economics, Elsevier, vol. 16(3), pages 291-303, June.
    3. Gindling, T.H. & Terrell, Katherine, 2010. "Minimum Wages, Globalization, and Poverty in Honduras," World Development, Elsevier, vol. 38(6), pages 908-918, June.
    4. Andrés Ham, 2015. "Minimum wage violations in Honduras," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-19, December.
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