MPIA-10411 Social Security Reform in Argentina: Impact on Poverty, Income Inequality and Vulnerability

Abstract

In 1994, Argentina introduced deep reforms to its social security system. Such reform were part of a major program aiming at modernizing its economy, including establishing a currency board to reduce inflation, a huge privatization program, opening of the economy, deregulation, etc. The results in terms of stabilization and growth were impressive. Capital inflows and investment also grew very fast. However, employment stagnated, poverty augmented and income distribution worsened. While it can be argued that the deterioration of these social indicators was to some extent the result of the economy being hit by external shocks (Tequila crisis, etc.), the transformation of the social security system also had a significant effect over the evolution of social indicators. In this project we will analyze the effects of the introduction of a new individual accounts in Pension System which is under effect since 1994- over poverty, employment, vulnerability and income distribution. 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. This project builds on previous work conducted by IERAL and contributes to the design of a new methodology that can be used to test the effect of other policy changes on poverty and income distribution.

Members

Project leader: Maria Laura Alzua

Project researchers: Hernán Ruffo | Pablo Brassiolo

Journal publication

No journal publications.

Working Papers

	Title	Modified	Size	Comments	Recommendations
	Efects of Argentina's Social Security Reform on labor markets and poverty.	2011-06-16	760.48KB	0	1

Policy Briefs

No policy briefs.

Final report

	Title	Modified	Size	Comments	Recommendations
		2006-10-10	254 KB	0	1

Proposal

	Title	Modified	Size	Comments	Recommendations
		2005-04-29	82 KB	0	1