Informality and Contributory and Non‐Contributory Programmes: Recent Reforms of the Social‐Protection System in Uruguay

21 Pages Posted: 6 Aug 2013

See all articles by Guillermo Cruces

Guillermo Cruces

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS); IZA

Marcelo Bergolo

Universidad de la Republica - Instituto de Economía; IZA Institute of Labor Economics

Date Written: September 2013

Abstract

Several countries in Latin America are expanding their social‐protection systems. There is an on‐going debate about the trade‐offs implied by these expansions, and by the resulting interactions between contributory and non‐contributory programmes with informality in the labour market. This article analyses the potential incentive effects for formal and informal employment from a set of social‐protection reforms implemented in Uruguay in the 1990s and 2000s. It presents empirical evidence of the expansion of health insurance to formal workers' dependants, and finds that this reform significantly increased formal employment. Finally, it discusses possible alternatives to extend social‐protection systems while maintaining incentives for formal work in Latin America's labour markets.

Keywords: Social‐protection systems, labour‐market informality, Latin America

Suggested Citation

Cruces, Guillermo and Bergolo, Marcelo, Informality and Contributory and Non‐Contributory Programmes: Recent Reforms of the Social‐Protection System in Uruguay (September 2013). Development Policy Review, Vol. 31, Issue 5, pp. 531-551, 2013. Available at SSRN: https://ssrn.com/abstract=2306417 or http://dx.doi.org/10.1111/dpr.12024

Guillermo Cruces (Contact Author)

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) ( email )

Centro de Estudios Distributivos, Laborales y
Sociales, Calle 6 e/47 y 48
La Plata, Provincia de Buenos Aires 1900
Argentina

HOME PAGE: http://cedlas.econo.unlp.edu.ar

IZA

P.O. Box 7240
Bonn, D-53072
Germany

Marcelo Bergolo

Universidad de la Republica - Instituto de Economía ( email )

Montevideo
Uruguay

HOME PAGE: http://www.iecon.ccee.edu.uy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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