Argentina: Macroeconomic Crisis and Household Vulnerability

38 Pages Posted: 29 Jan 2006

See all articles by Ana Corbacho

Ana Corbacho

International Monetary Fund (IMF) - Fiscal Affairs Department

Mercedes Garcia-Escribano

University of Chicago - Department of Economics

Gabriela Inchauste

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: April 2003

Abstract

Using urban household surveys, we constructed a panel dataset to study the effects of the Argentine macroeconomic crisis of 1999-2002 with the aim of (1) identifying the most vulnerable households, (2) investigating whether employment in the public sector and government spending served to decrease vulnerability, and (3) understanding the mechanisms used by households to smooth the effects of the crisis. Households whose heads were male, less educated, and employed in the construction sector were more vulnerable to the crisis, experiencing larger-than-average declines in income and higher dispersion. Households whose heads were employed in the public sector were more protected from the crisis, although higher public spending did not serve to decrease their vulnerability. A significant source of vulnerability was linked to changes in employment status, and we studied the determinants of the probability of being unemployed and of becoming unemployed. Last, we found that households were unable to perfectly smooth income shocks. Given these results, there is room for broadening social safety nets, particularly in the form of public works programs.

Keywords: Argentina, macroeconomic crisis, household welfare

JEL Classification: H53, I31

Suggested Citation

Corbacho, Ana and Garcia-Escribano, Mercedes and Inchauste Comboni, Maria Gabriela, Argentina: Macroeconomic Crisis and Household Vulnerability (April 2003). IMF Working Paper No. 03/89, Available at SSRN: https://ssrn.com/abstract=879165

Ana Corbacho (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Mercedes Garcia-Escribano

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

Maria Gabriela Inchauste Comboni

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
89
Abstract Views
4,821
rank
322,865
PlumX Metrics