Poverty alleviation strategies under informality: evidence for Latin America

dc.creatorCaruso Bloeck, Martin
dc.creatorWeinschelbaum, Federico
dc.creatorGaliani, Sebastián
dc.date2020-01-13T18:56:03Z
dc.date2020-01-13T18:56:03Z
dc.date2019-11-14
dc.date.accessioned2023-07-21T16:44:07Z
dc.date.available2023-07-21T16:44:07Z
dc.identifier2196-436X
dc.identifierhttp://hdl.handle.net/11651/4039
dc.identifierEn: Latin American Economic Review, volumen 28, número 1, noviembre de 2019
dc.identifierhttps://doi.org/10.1186/s40503-019-0074-4
dc.identifierhttps://link.springer.com/article/10.1186/s40503-019-0074-4
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/7735575
dc.descriptionPoverty, inequality, means testing, proxy means testing, Latin America and the Caribbean
dc.descriptionStrategies based on growth and inequality reduction require a long-run horizon, and this paper therefore argues that those strategies need to be complemented by poverty alleviation programs. With regards to such programs, informality in Latin America and the Caribbean is a primary obstacle to carry out means testing income-support programs, and countries in the region have therefore mostly relied on proxy means testing mechanisms. This paper studies the relative effectiveness of these and other mechanisms by way of a formal model in which workers choose between job opportunities in the formal and informal sectors. Although the means testing mechanism allows for a more pro-poor design of transfers, it distorts labor decisions made by workers. On the other hand, (exogenous) proxy means testing does not cause distortions, but its pro-poor quality is constrained by the power of observable characteristics to infer income levels. However, since taxation is necessary to fund programs, redistribution becomes less effective, especially for programs other than means testing. The paper concludes by discussing the implications of these results for the design of more efficient targeting programs.
dc.formatapplication/PDF
dc.formatapplication/pdf
dc.languageeng
dc.publisherCentro de Investigación y Docencia Económicas
dc.relationLatin American Economic Review, volumen 28, número 1, noviembre de 2019
dc.relation“Inter-American Development Bank”
dc.relation“http://iresearch.worldbank.org/PovcalNet/povOnDemand.aspx”
dc.relationhttp://www.cedlas.econo.unlp.edu.ar/wp/en/estadisticas/sedlac/
dc.rightsLa revista Latin American Economic Review autoriza a poner en acceso abierto de conformidad con las licencias CREATIVE COMMONS, aprobadas por el Consejo Académico Administrativo del CIDE, las cuales establecen los parámetros de difusión de las obras con fines no comerciales. Lo anterior sin perjuicio de los derechos morales que corresponden a los autores.
dc.rightsCreative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0 International CC BY-NC-ND
dc.source2196-436X
dc.titlePoverty alleviation strategies under informality: evidence for Latin America
dc.typeArtículo


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