The impact of a social program on labor informality: The case of AUH in Argentina

Garganta, Santiago; Gasparini, Leonardo

doi:10.1016/j.jdeveco.2015.02.004

Cited by 57 publications

(60 citation statements)

References 24 publications

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“…These authors find that the labor market consequences of an increase in family size tend to be more severe for poor and less educated women. 26 In a previous study of the AUH, Garganta and Gasparini (2015) find that the labor disincentive towards formality generated by the program is significantly higher for workers with more children. 27 Although the estimated coefficient for the group of mothers with children aged 15-17 is negative and relatively high, the corresponding treatment effect is not significant.…”

Section: Discussionmentioning

confidence: 92%

“…Some previous studies show that the program generated relevant labor disincentives (Boffi 2013;Garganta and Gasparini 2015;Castillo et al 2013) while others fail to find significant changes in adults' labor supply (Maurizio and Vazquez 2014;Kliksberg and Novacovsky 2015). For instance, Maurizio and Vazquez (2014) find a slightly significant but not robust increase in the unemployment rate of beneficiary women.…”

Section: Literature and Backgroundmentioning

confidence: 98%

“…The existing literature finds that the AUH had a significant impact on the reduction of poverty and income inequality (Gasparini and Cruces 2010;Agis et al 2010), discouraged labor market formalization (Garganta and Gasparini 2015), and increased school attendance (Edo et al 2015). Although there are also some few estimations of the effect of the AUH on adult's labor supply, no conclusive evidence was found in this regard (Boffi 2013;Castillo et al 2013;Maurizio and Vazquez 2014;Kliksberg and Novacovsky 2015) and there are still no studies assessing the impact of this program on labor participation with a main focus on the potential gender bias that CCTs could actually incite.…”

Section: Literature and Backgroundmentioning

confidence: 99%

“…1 The evidence suggests that these programs have played a very important role in the short-term reduction of poverty and income inequality in the region and in the promotion of human capital accumulation in poor families (Fiszbein and Schady 2009;Ibarrarán et al 2017). However, there is concern about some potential unintended effects of these programs; in particular, they may imply a labor supply disincentive and a bias towards unregistered labor arrangements (Levy 2008;Levy and Schady 2013;Garganta and Gasparini 2015). Moreover, disincentives to labor market participation may be gender biased.…”

Section: Introductionmentioning

confidence: 99%

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Cash transfers and female labor force participation: the case of AUH in Argentina

2017

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In this paper, we estimate the impact on female labor force participation of a massive conditional cash transfer program-Universal Child Allowance, AUH-launched in Argentina in 2009. We identify the intention-to-treat effect by comparing eligible and non-eligible women over time through a diff-in-diff methodology. The results suggest a negative and economically significant effect of the program on female labor force participation. The disincentive to participate is present for married women, while the effect is not statistically significant for unmarried women with children. We also find evidence on the heterogeneity of the effect depending on woman's education, husband's employment status, number and age of children, and whether the woman is the main responsible of domestic chores. The relatively large value of the benefit and the fact that transfers are mostly directed to mothers may explain the sizeable effect of the program on female labor supply. The welfare implications of the results are not clear and deserve further inspection. JEL Classification: H53, I38, J16, J22

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Section: Discussionmentioning

confidence: 92%

Section: Literature and Backgroundmentioning

confidence: 98%

Section: Literature and Backgroundmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Cash transfers and female labor force participation: the case of AUH in Argentina

2017

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“…In Mexico (Bosch and Campos-Vazquez 2014) and Colombia (Camacho et al 2014), health insurance provided at no cost to workers in the informal sector led to labor reallocations from formal to informal employment. In Argentina, a Universal Child Allowance provided only to workers who were not in formal employment reduced transitions from informal to formal work (Garganta and Gasparini 2015).…”

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confidence: 99%

The Effect of Welfare Payments on Work in a Middle-Income Country

Araujo¹,

Bosch²,

Maldonado³

et al. 2017

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work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. AbstractWe study the impact of welfare payments in Ecuador on the probability that women and men work, and on whether they are employed in the formal or informal sectors. Our analysis is based on two distinct identification strategies and two separate sources of data spanning more than 10 years. We find no evidence that welfare discouraged work. However, among women, welfare payments led to reductions in social security contributions (which are mandated for salaried workers) and payment of VAT and income taxes (which are mandated for the self-employed and firm owners), although the magnitude of these effects is small. JEL Classification: H55, I38, J22

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The Effects of Social Protection on Informal Employment: Evidence from Tunisia

Cheikh

Moisseron

2020

International Series on Public Policy

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The impact of a social program on labor informality: The case of AUH in Argentina

Cited by 57 publications

References 24 publications

Cash transfers and female labor force participation: the case of AUH in Argentina

Cash transfers and female labor force participation: the case of AUH in Argentina

The Effect of Welfare Payments on Work in a Middle-Income Country

The Effects of Social Protection on Informal Employment: Evidence from Tunisia

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