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

Autores
Alaimo, Verónica; Carbajal, Fedora; Garganta, Santiago; Pessino, Carola
Año de publicación
2018
Idioma
inglés
Tipo de recurso
documento de conferencia
Estado
versión publicada
Descripción
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
Materia
Ciencias Económicas
informality
social protection
poverty
inequality
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by-nc-sa/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/165057

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spelling The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in UruguayAlaimo, VerónicaCarbajal, FedoraGarganta, SantiagoPessino, CarolaCiencias Económicasinformalitysocial protectionpovertyinequalitySince 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 Económicas2018-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/165057enginfo:eu-repo/semantics/altIdentifier/isbn/978-987-28590-6-0info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2018/garganta.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:43:30Zoai:sedici.unlp.edu.ar:10915/165057Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:43:30.894SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv 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 The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
spellingShingle 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
Ciencias Económicas
informality
social protection
poverty
inequality
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 The cost and distributive impact of the informality incentives from non-contributory spending: the cases of AUH in Argentina and AFAM-PE in Uruguay
dc.creator.none.fl_str_mv Alaimo, Verónica
Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
author Alaimo, Verónica
author_facet Alaimo, Verónica
Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
author_role author
author2 Carbajal, Fedora
Garganta, Santiago
Pessino, Carola
author2_role author
author
author
dc.subject.none.fl_str_mv Ciencias Económicas
informality
social protection
poverty
inequality
topic Ciencias Económicas
informality
social protection
poverty
inequality
dc.description.none.fl_txt_mv 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
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.
publishDate 2018
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info:eu-repo/semantics/altIdentifier/issn/1852-0022
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