Informal Employment in Argentina : Causes and Consequences

This report presents the final results and conclusions of a two-year program developed by a World Bank team in Argentina, to analyze the determinants of informality and its impact on poverty and equity. Informality in the labor market has become a central concern for policy makers and the society at large in Argentina. The long upward trend in informal employment until recent year has been viewed as a deterioration in working conditions that is behind the sustained rise in poverty and inequality in the last quarter of the twentieth century. While some of the possible causes for the rise in informality have been studied, their relative importance remains unclear and its links with poverty and inequality have not been examined in detail. A primary objective of the program is to deepen the shared work with the Argentine government and civil society on socio-economic development and equity issues. The aim has been to analyze and propose policy options for the labor market that respond to the Government's priorities, are technically sound, and provide an open menu for discussion. The study of informality in the labor market is not an empty field in Argentina. Many local analysts have studied its causes and consequences, and this report built on this work. A key aspect of the program was to draw on the extensive local analytical studies on the issues and sustain an active interaction with government counterparts and civil society through technical workshops, meetings and other outreach efforts. This report focused on discussing the evolution, determinants, and policy options to reduce labor informality in Argentina and its impacts. By developing a common base of diagnoses with the government, the program set a path for further discussions and collaborations. Following this process, the Ministry of Labor has already asked the Bank to collaborate on a new program that will focus on labor markets, social protection, and income distribution, looking for policies that would result in better and more effective policies to increase equity in Argentina.

Bibliographic Details

Main Author:	World Bank
Language:	English
Published:	Washington, DC 2008-03
Subjects:	ACCOUNTABILITY, ACCOUNTING, ADDITIONAL SAVINGS, AGE GROUP, AGE GROUPS, AUDITS, AUTONOMY, BENEFICIARIES, CALCULATIONS, CASH TRANSFER, CONSOLIDATION, CONTRIBUTION, CONTRIBUTORY SYSTEM, CRISES, CURRENCY, CURRENT JOB, CURRENT PROGRAMS, DEVELOPMENT BANK, DISCUSSIONS, DISMISSAL, DOMESTIC CURRENCY, DRIVERS, EARNING, EARNINGS, EARNINGS INEQUALITY, ECONOMIC ACTIVITIES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EDUCATIONAL LEVEL, EMPLOYEE, EMPLOYMENT CREATION, EMPLOYMENT LEVELS, EMPLOYMENT PATTERNS, EMPLOYMENT POLICY, EMPLOYMENT PROGRAM, EMPLOYMENT RATE, EMPLOYMENT RATES, EMPLOYMENT SHARE, EMPLOYMENT TRENDS, ENTREPRENEURSHIP, EQUAL PAY, EQUITY ISSUES, EXCHANGE RATES, FAMILY ALLOWANCES, FAMILY MEMBER, FINANCES, FINANCIAL ARRANGEMENTS, FINANCIAL SUSTAINABILITY, FIRING COSTS, FIRING RESTRICTIONS, FIRM SIZE, FISCAL SUSTAINABILITY, HEALTH INSURANCE, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HUMAN CAPITAL, INCOME DISTRIBUTION, INCOME INEQUALITY, INCOME REPLACEMENT, INCOME SUPPORT, INCOMES, INDIVIDUAL SAVINGS, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INNOVATION, INNOVATIONS, INSURANCE SCHEME, INSURANCE SCHEMES, INTEREST INCOME, INTERNATIONAL LABOUR ORGANIZATION, INVESTMENT CLIMATE, JOB LOSS, JOB SECURITY, JOB TENURE, JOB TURNOVER, JOBS, KNOWLEDGE GAPS, LABOR CONTRACT, LABOR CONTRACTS, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR INSPECTION, LABOR LAW, LABOR LEGISLATION, LABOR MARKET, LABOR MARKET CHARACTERISTICS, LABOR MARKET POLICIES, LABOR MARKETS, LABOR OFFICES, LABOR POLICIES, LABOR POLICY, LABOR PRODUCTIVITY, LABOR REGULATIONS, LABOR STUDIES, LABOUR, LARGE FIRM, LARGE FIRMS, LATIN AMERICAN, LEVEL OF EDUCATION, LIVING CONDITIONS, LOW INCOME, LOW-INCOME, MARKET EQUILIBRIUM, MEDICAL CARE, MIDDLE-INCOME FAMILIES, MINIMUM WAGE, MINIMUM WAGES, MOTIVATION, OCCUPATION, OLDER WORKERS, PAYING JOBS, PAYROLL TAX, PAYROLL TAXES, PENALTIES, PENSION, PENSION CONTRIBUTIONS, PENSION COVERAGE, PENSION SYSTEM, PENSION SYSTEMS, PENSIONS, POLITICAL ECONOMY, POVERTY RATES, PREVIOUS STUDIES, PRIMARY EDUCATION, PRIMARY OBJECTIVE, PRIVATE EMPLOYMENT, PRIVATIZATION, PROBABILITIES, PROBABILITY, PRODUCTIVE SECTOR, PRODUCTIVITY GROWTH, PROGRAM DESIGN, PROTECTING WORKERS, PUBLIC AGENCIES, PUBLIC CONFIDENCE, PUBLIC EMPLOYMENT, PUBLIC POLICY, PUBLIC SECTOR EMPLOYMENT, PURCHASING POWER, REGRESSION ANALYSES, REGULATORY FRAMEWORK, RESPONSIBILITIES, RETIREMENT, RETIREMENT PLAN, SALARIED EMPLOYMENT, SALARIED WORKER, SALARIED WORKERS, SALES, SAVINGS ACCOUNTS, SELF-EMPLOYMENT, SENIOR, SERVICE INDUSTRIES, SEVERANCE PAY, SMALLER FIRMS, SOCIAL ASSISTANCE, SOCIAL DEVELOPMENT, SOCIAL INSURANCE, SOCIAL POLICIES, SOCIAL PROTECTION, SOCIAL PROTECTIONS, SOCIAL SECURITY, SOCIAL SECURITY BENEFITS, SOCIAL SECURITY CONTRIBUTIONS, SOCIAL WELFARE, SOURCE OF INFORMATION, TAX COMPLIANCE, TAX LAWS, TEMPORARY EMPLOYMENT, TERM CONTRACT, TERM CONTRACTS, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, TRADE LIBERALIZATION, UNEMPLOYED, UNEMPLOYED WORKERS, UNEMPLOYMENT, UNEMPLOYMENT BENEFITS, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT INSURANCE PROGRAM, UNSKILLED LABOR, UNSKILLED WORKERS, URBAN EMPLOYMENT, URBAN WORKERS, VALUABLE, VALUATION, WAGE ADJUSTMENT, WAGE EMPLOYMENT, WAGE GAP, WAGE INCREASES, WAGE RIGIDITIES, WELFARE STATE, WORK EXPERIENCE, WORKER, WORKERS, WORKING CONDITIONS, YOUNG WORKERS, YOUNGER WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9819912/argentina-labor-market-study-informal-employment-argentina-causes-consequences https://hdl.handle.net/10986/8119
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