Argentina´s Distributional Failure: The role of Integration and Public Policies

This paper documents the income distribution changes experienced by Argentina during the last decades. Inequality substantially increased, and despite economic growth during some periods, poverty also went significantly up. Two types of episodes have shaped Argentina’s income distribution: deep macroeconomic crisis and periods of openness and integration. The sizeable raise in inequality in the 90s seems to be associated to reallocations against unskilled-labor intensive sectors, and especially to skilled-biased technological change within most sectors, both factors stimulated by the process of economic integration. The depth and speed of the reforms and the absence of public policies to ease the transition contributed to the particular severity of the income distribution changes in Argentina.inequality, distribution, globalization, integration, wages, education, Argentina

Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata

This paper documents the main patterns and trends of alternative definitions of labor informality in Latin America and the Caribbean, by exploiting a large database of more than 100 household surveys covering the period 1989-2005. The evidence suggests that there are no signs of a consistent pattern of reduction in labor informality in the region. Regardless of the definition used, labor informality remains a pervasive characteristic of labor markets in LAC. In several countries the increase in labor informality seems to have been associated more to a sizeable increase in the propensity to set informal arrangements within groups, than to changes in the national employment structure toward more informal sectors.Informality, employment,Latinamerican, Caribean,Labor Market

Income Inequality in Latin America and the Caribbean: Evidence from Household Surveys

This paper reports information on income inequality in Latin America and the Caribbean computed from a sample of more than 50 household surveys from 20 LAC countries from 1989 to 2001. Although the core of the statistics is on household income inequality, we also report results on aggregate welfare and polarization. Inequality has moderately increased in South America in the last decade. The two main exceptions are Argentina, with a very large inequality increase, and Brazil, where inequality actually decreased. Changes have not been significant in Central America and the Caribbean. Aggregate welfare has increased in most countries fueled by economic growth and despite unequalizing distributional changes.inequality, distribution, income, wages, education, Latin America, Caribbean.

Assessing benefit-incidence results using decompositions. The case of health policy in Argentina.

This paper discusses the use of aggregate and microeconometric decompositions to compare benefit-incidence results over time. Decompositions are applied to explore changes in targeting in health policies directed to pregnant women and children under 4 in Argentina. The results suggest that although health public programs are pro-poor, incidence changes in the period 1997-2001 were pro-rich due to at least two factors: a substantial reduction in the fertility rate of poor couples, and an increase in the use of public facilities by wealthier households, likely triggered by the economic crisis.Argentina

Assessing Benefit-Incidence Results Using Decompositions: The Case of Health Policy in Argentina

This paper discusses the use of aggregate and microeconometric decompositions to compare benefit-incidence results over time and across regions. Decompositions are applied to explore changes in targeting in health policies directed to pregnant women and children under 4 in Argentina. The results suggest that although health public programs are pro-poor, incidence changes in the last 5 years have been pro-rich due to two different factors: a substantial reduction in the fertility rate of poor couples, and an increase in the use of public facilities by wealthier households, likely triggered by the economic crisis that Argentina has suffered since 1998.protección, informalidad, empleo, América Latina.

Tracing out the Effects of Demographic Changes on the Income Distribution. The Case of Greater Buenos Aires 1980-2000

During the last two decades fertility decisions have varied significantly and not uniformly along the income distribution. In this paper we study the effects of these demographic changes on two dimensions of the income distribution -poverty and inequality- by applying microeconometric decompositions techniques. In particular, we simulate the equivalized household income distribution that would emerge if individuals in time t took fertility decisions as in time t’. The results suggest that these demographic factors can account for a of the actual increase in poverty and inequality between 1980 y 1992.demography, fertility, income distribution, poverty, inequality, Argentina, Greater Buenos Aires, decompositions

Estimating Income Poverty and Inequality from the Gallup World Poll: The Case of Latin America and the Caribbean

This paper takes advantage of a new source of information – the Gallup World Poll 2006 – to estimate and characterize income poverty and inequality in Latin America and the Caribbean (LAC) at the country level, and to compare LAC estimates to those in other regions of the world. The Gallup survey has the advantage of being conducted in over 130 nations with almost the same questionnaire in all countries, and then it stands as a complement to national household surveys for international comparison purposes.poverty, inequality, incomes, Latin America, Caribbean, Gallup

A Distribution in Motion: The Case of Argentina

This paper documents the changes in the income distribution in Argentina from the mid-1970s to the mid-2000s. Over the period inequality increased substantially. Two types of episodes have shaped this upward trend: deep macroeconomic crises and periods of sudden and intense economic liberalization. The sizeable rise in inequality in the 1990s seems to be associated to reallocations against unskilled-labor intensive sectors, and skilled-biased technological change within most sectors, both factors stimulated by the process of economic integration. The depth and speed of the reforms and the scarcity of public policies to ease the transition contributed to the particular severity of the income distribution changes. The macro crises and the subsequent recoveries contributed to the volatility of inequality along this upward trend. The large macroeconomic crisis of 2001/02 triggered a large jump in inequality, although income disparities returned to pre-crisis levels as the economy recovered fast, and large cash transfer programs were implemented.inequality, distribution, integration, wages, Argentina

Meeting the Poverty-Reduction MDG in the Southern Cone

This paper assesses the likelihood of meeting the Millennium Development Goal of halving poverty by 2015 in Argentina, Chile, Paraguay and Uruguay. We simulate the poverty impact of changes in growth rates and redistributive policies, and trace the poverty consequences of various alternative economic scenarios using microeconometric decompositions. Sustainable and vigorous productivity growth seems to be a necessary condition to meet the poverty MDG by 2015 in Argentina, Paraguay and Uruguay. The required growth rate could be significantly lower if some modest well-targeted redistribution could be performed. In contrast to its neighbors, Chile has already achieved the poverty MDG.MDG, poverty, Argentina, Chile, Paraguay, Uruguay