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Is Informal Sector Work an Alternative to Workfare Benefits? The Case of Pre-program Expansion and Economic Crisis

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  • Melanie Khamis

Abstract

Limited availability of workfare programs and unemployment insurance and a large informal sector are features of the Argentine labor market at the outset of the 2001 economic crisis. This paper tests the hypothesis whether informal work is an alternative to workfare participation before a large-scale program expansion took place. Results from the propensity score matching indicate that observable characteristics of informal low-income workers and current workfare participants are significantly different. However, within these groups, it is possible to identify subgroups that exhibit similar observable characteristics. This indicates that only a subset of the individuals sees workfare and informal sector work as substitutable alternatives.
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  • Melanie Khamis, 2012. "Is Informal Sector Work an Alternative to Workfare Benefits? The Case of Pre-program Expansion and Economic Crisis," Review of Development Economics, Wiley Blackwell, vol. 16(4), pages 579-593, November.
    • Handle: RePEc:bla:rdevec:v:16:y:2012:i:4:p:579-593
    DOI: 10.1111/rode.2012.16.issue-4
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    3. Stephen Dobson & Carlyn Ramlogan-Dobson & Eric Strobl, 2020. "Savings and the informal sector," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 217-234, March.

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    More about this item

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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