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Social protection to the informal sector: the role of minimum wage and income transfer policies

Groisman, Fernando and Boffi, Santiago and Calero, Analía and Cuba, María Soledad and Liniado, Julia and Sconfienza, María Eugenia and Vergara Parra, Albano (2015): Social protection to the informal sector: the role of minimum wage and income transfer policies. Published in: PAGE - Policy Analysis on Growth and Employment (August 2015): pp. 1-27.

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Abstract

The objective of this study is to examine the impact that changes in minimum wage and the main income transfer programs have had on the economic participation of the population and the informal sector in Argentina. The obtained evidence suggests that modifications to minimum wage did not produce adverse effects on employment or have a substantial impact on the probabilities of entering the informal sector. Regarding the income transfers, it was possible to confirm that it did not encourage adults in beneficiary households to become economically inactive.

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