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dc.titleSubsidizing Informality?: Non-contributory Public Spending in Latin America and the Caribbean
dc.contributor.authorIzquierdo, Alejandro
dc.contributor.authorAltamirano Montoya, Álvaro
dc.contributor.authorAlaimo, Veronica
dc.contributor.authorDborkin, Daniela
dc.contributor.orgunitLabor Markets Division
dc.coverageColombia
dc.coverageCosta Rica
dc.coverageArgentina
dc.coverageBolivia
dc.coverageBrazil
dc.coverageChile
dc.coverageEcuador
dc.coverageEl Salvador
dc.coverageJamaica
dc.coverageMexico
dc.coverageGuatemala
dc.coverageHonduras
dc.coverageNicaragua
dc.coverageUruguay
dc.coverageParaguay
dc.coveragePeru
dc.coverageLatin America and the Caribbean
dc.date.available2018-10-26T00:00:00
dc.date.issue2018-09-28T00:00:00
dc.description.abstractThis paper presents new data documenting the level and evolution of public spending on non-contributory programs for 16 countries in Latin America and the Caribbean. Salaried formal workers contribute to social security and in return have access to an array of benefits -mainly old-age pensions and health services. In recent decades, informal workers – salaried and non-salaried- have gained access to similar benefits, financed through general revenues. Our calculations indicate that, on average, the region spends 1.7% of GDP in these programs. Although they were created in response to social demands, by targeting informal workers these programs may create a behavioral response -i.e. more informality. This paper does not attempt to measure behavioral effects. Its main contribution is to be the first to document this “subsidy to informality” following a common methodology across countries and years in the region.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0001373
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Subsidizing-Informality-Non-contributory-Public-Spending-in-Latin-America-and-the-Caribbean.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectWorking Condition
dc.subjectInformal Labor
dc.subjectPublic Expenditure
dc.subject.jelcodeH53 - Government Expenditures and Welfare Programs
dc.subject.jelcodeH55 - Social Security and Public Pensions
dc.subject.jelcodeJ38 - Public Policy
dc.subject.keywordsInformality;Government Expenditure;Welfare programs;labor policy
dc.typeTechnical Notes
idb.identifier.pubnumberTechnical Notes
idb.operationRG-T2782
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