The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay

Since the last decade most countries in Latin America have experienced substantial changes in their social policies implementing a set of non-contributory social assistance benefit programs. There is a permanent debate from the policy makers and academics about the direct and indirect labor market e...

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Autores principales: Alaimo, Verónica, Carbajal, Fedora, Garganta, Santiago, Pessino, Carola
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2018
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/165057
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spelling I19-R120-10915-1650572024-04-19T20:01:54Z http://sedici.unlp.edu.ar/handle/10915/165057 The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay Alaimo, Verónica Carbajal, Fedora Garganta, Santiago Pessino, Carola 2018-11 2018 2024-04-19T14:13:08Z en Ciencias Económicas informality social protection poverty inequality Since the last decade most countries in Latin America have experienced substantial changes in their social policies implementing a set of non-contributory social assistance benefit programs. There is a permanent debate from the policy makers and academics about the direct and indirect labor market effects of these programs. The most concerning discussion in the region is the unintended incentive towards informality that these policies could generate. This paper estimates the fiscal cost and distributive impact of this labor distortion conducted by the two main non-contributory programs in Argentina and Uruguay: Asignación Universal por Hijo (AUH) and Asignaciones Familiares – Plan de Equidad (AFAM-PE), respectively. We find that the substitution effect from formal to informal employment attributed to each program represents a relevant portion of the total budget of these policies. The results also reflect that a simple fiscal incidence analysis of these programs that ignore the consequences of these labor incentives on the market income distribution will exaggerate the true effect of these policies on the disposable or final income poverty and inequality. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
informality
social protection
poverty
inequality
spellingShingle Ciencias Económicas
informality
social protection
poverty
inequality
Alaimo, Verónica
Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
topic_facet Ciencias Económicas
informality
social protection
poverty
inequality
description Since the last decade most countries in Latin America have experienced substantial changes in their social policies implementing a set of non-contributory social assistance benefit programs. There is a permanent debate from the policy makers and academics about the direct and indirect labor market effects of these programs. The most concerning discussion in the region is the unintended incentive towards informality that these policies could generate. This paper estimates the fiscal cost and distributive impact of this labor distortion conducted by the two main non-contributory programs in Argentina and Uruguay: Asignación Universal por Hijo (AUH) and Asignaciones Familiares – Plan de Equidad (AFAM-PE), respectively. We find that the substitution effect from formal to informal employment attributed to each program represents a relevant portion of the total budget of these policies. The results also reflect that a simple fiscal incidence analysis of these programs that ignore the consequences of these labor incentives on the market income distribution will exaggerate the true effect of these policies on the disposable or final income poverty and inequality.
format Objeto de conferencia
Objeto de conferencia
author Alaimo, Verónica
Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
author_facet Alaimo, Verónica
Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
author_sort Alaimo, Verónica
title The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
title_short The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
title_full The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
title_fullStr The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
title_full_unstemmed The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
title_sort cost and distributive impact of the informality incentives from non-contributory spending: the cases of auh in argentina and afam-pe in uruguay
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/165057
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