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Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions

Working Document: Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions
by Lustig, Nora and Carola Pessino
November 2012

Abstract
Between 2003 and 2009, Argentina‘€™s social spending as a share of GDP increased by 7.6 percentage points. Marginal benefit incidence analysis for 2003, 2006, and 2009 suggests that the contribution of cash transfers to the reduction of disposable income inequality and poverty rose markedly between 2006 and 2009 primarily due to the launching of a noncontributory pension program- the pension moratorium- in 2004. Noncontributory pensions as a share of GDP rose by 2.2 percentage points between 2003 and 2009 and entailed a redistribution of income to the poor, and from the formal sector pensioners with above minimum pensions to the beneficiaries of the pension moratorium. The redistributive impact of the expansion of public spending on education and health was also sizeable and equalizing, but to a lesser degree. An assessment of fiscal funding sources puts the sustainability of the redistributive policies into question, unless nonsocial spending is significantly cut.

Working Document: Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions, Updated November 2012

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Join us every Wednesday at 10:30 am for a bilingual storytime for kids ages 2 – 10. The program is part of an initiative between Tulane University’s Stone Center for Latin American Studies and the New Orleans Public Library called the Pebbles Center. This summer we will explore the environment and diverse geography of Latin America. Bring your favorite jungle animal and be prepared to learn some Spanish as we embark on an adventure through the Americas. This program provides a reading list of recommended titles for all ages to explore Latin America on your own this summer. If you read all books, you will be eligible for a special award offered during Hispanic Heritage month at the annual Celebración Latina held at the Audubon Zoo.

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