Abstract

http://ssrn.com/abstract=1874023
 


 



Effects of Argentina's Social Security Reform on Labor Markets and Poverty


Maria Laura Alzua


CEDLAS, Universidad Nacional de La Plata

Hernan Ruffo


affiliation not provided to SSRN

June 1, 2011

PEP MPIA Working Paper No. 2011-11

Abstract:     
In 1994, Argentina introduced Pension Reform and Unemployment Benefits as a major reform component to its social security system. This papers analyzes the effects of introducing new individual accounts in the pension system - which was under effect between 1994 and 2008 - over wages, employment and poverty. While the macroeconomic effects of a change in the pension system is an issue that is relatively well addressed by the literature, its microeconomic effects are often neglected in the analysis.

We use a CGE model to evaluate the effects of the reform on labor market and poverty. Our results indicate that if private pension funds are allocated to physical investment, labor demand and wages increase and poverty goes down. However, these effects fade out if funds of private accounts are used to buy government debt.

Number of Pages in PDF File: 34

Keywords: Social Security, Poverty, Argentina

JEL Classification: H53, H55, D39

working papers series


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Date posted: July 7, 2011  

Suggested Citation

Alzua, Maria Laura and Ruffo, Hernan, Effects of Argentina's Social Security Reform on Labor Markets and Poverty (June 1, 2011). PEP MPIA Working Paper No. 2011-11. Available at SSRN: http://ssrn.com/abstract=1874023 or http://dx.doi.org/10.2139/ssrn.1874023

Contact Information

Maria Laura Alzua (Contact Author)
CEDLAS, Universidad Nacional de La Plata ( email )
7 Nº 776
Buenos Aires, BA 1900
United States
Hernan Ruffo
affiliation not provided to SSRN ( email )
Feedback to SSRN


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