Comments on 'The End of Informality in Mexico? Fiscal Reform for Universal Social Insurance' by Arturo Anton, Fausto Hernandez and Santiago Levy

Abstract:     
This is a review of the paper by Anton, Hernandez and Levy (2012), which is motivated by the analysis by Santiago Levy (2008) on the impact on the labor market of subsidized programs that deviate demand from funded social insurance programs. The paper deals with the evaluation of a fiscal reform and proposes an hypothesis on the determinants of the evolution of social policy. The first issue is amenable to empirical verification, while on the second, the arguments presented are not consistent with history or with a view based on the competition of ideas.

Number of Pages in PDF File: 29

Keywords: Fiscal reform, social protection, payroll taxes, social security

JEL Classification: O17

working papers series