Argentina: A Case Study on the Plan Jefes y Jefas de Hogar Desocupados, or the Employment Road to Economic Recovery

Levy Economics Institute Working Paper No. 534

31 Pages Posted: 13 May 2008

See all articles by Daniel Kostzer

Daniel Kostzer

United Nations - Development Programme (UNDP)

Date Written: May 13, 2008

Abstract

After the 2001 crisis, Argentina - once the poster-child for pro-market structural-adjustment policies - had to define a new strategy in order to manage the societal demands that had led to the fall of the previous administration. The demand by the majority of the population for employment recovery spurred the government to introduce a massive employment program, the Plan Jefes y Jefas de Hogar Desocupados (Program for Unemployed Male and Female Heads of Households). This program, which accounted for less than 1 percent of GDP at the outset, paved the way for a reduction of the contractionary effects that otherwise would have caused a catastrophic devaluation of the currency. This paper explores how Argentina pursued a strategy of employment generation, with the state participating as employer of last resort, to recover from one of the worst social and economic crises in its history.

Keywords: Argentina, Employment, Employer of Last Resort (ELR), Economic Growth

JEL Classification: H53, J08, J48

Suggested Citation

Kostzer, Daniel, Argentina: A Case Study on the Plan Jefes y Jefas de Hogar Desocupados, or the Employment Road to Economic Recovery (May 13, 2008). Levy Economics Institute Working Paper No. 534. Available at SSRN: https://ssrn.com/abstract=1132772 or http://dx.doi.org/10.2139/ssrn.1132772

Daniel Kostzer (Contact Author)

United Nations - Development Programme (UNDP) ( email )

Esmeralda 130
Buenos Aires
Argentina
54 11 4320 8758 (Phone)

HOME PAGE: http://www.undp.org.ar

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