Poverty Alleviation Strategies under Informality: Evidence for Latin America
Peer Reviewed
Date issued
Dec 2018
Subject
Poverty Level;
Equality;
Informal Labor
JEL code
I38 - Government Policy • Provision and Effects of Welfare Programs;
J38 - Public Policy
Category
Technical Notes
This paper studies the relative effectiveness of these and other mechanisms by way of a formal model in which workers choose between job opportunities in the formal and informal sectors. Although the means testing mechanism allows for a more pro-poor design of transfers, it distorts labor decisions made by workers.
