CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 5: Social Spending and Income Redistribution in Argentina during the 2000s: The Rising Role of Noncontributory Pensions


Social Spending and Income Redistribution in Argentina during the 2000s: The Rising Role of Noncontributory Pensions
Working Paper No. 5

A working document by:
Nora Lustig
Samuel Z. Stone Professor of Latin American Economics, Tulane University and Non-resident Senior Fellow at the Center for Global Development and Inter-American Dialogue
Carola Pessino
_ Universidad del CEMA_

Abstract
Between 2003 and 2009, Argentina’s social spending as a share of GDP increased by 7.6 percentage points. 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 introduction of a new noncontributory pension program – known as “the pension moratorium” – in 2004. 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.

Access the working document here:
Updated August 2013
CEQ Working Paper No 5: Social Spending and Income Redistribution in Argentina during the 2000s: The Rising Role of Noncontributory Pensions

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