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IFS-STICERD Public Economics Seminar

Means-tested Social Assistance and Labor Market Informality

Marco Manacorda (Queen's Mary University and LSE)

Wednesday 24 June 2015 16:30 - 17:30

Due to the onging coronavirus outbreak, many of our seminars and public events this year will continue as online seminars. Please check our website listings and Twitter feed @STICERD_LSE for updates.


About this event

In this paper we study the effect of a generous income-tested anti-poverty program in Uruguay on recipients' labor supply. When labor market informality is widespread, as in many low and middle-income countries, individuals can gain eligibility for social assistance by shifting from formal to informal employment. Using matched restricted-use social security and administrative program micro-data on the universe of applicants plus sample survey data on self reported employment status, and exploiting the discontinuous assignment to the program as a function of a baseline poverty score, we show that the program significantly reduced participation in the formal labor market and that this was largely compensated by a rise in informality. We find no overall effect on participation. We conclude by discussing the welfare implications of social assistance when informality is widespread.

This seminar series is jointly organized by the IFS and STICERD.

IFS-STICERD Public Economics seminars are held on Wednesdays in term time at 16:30-17:30, ONLINE, unless specified otherwise.

Seminar organisers: Stuart Adam (IFS), Monica Costa Dias (IFS), Xavier Jaravel (LSE), Camille Landais (LSE), Attila Lindner (UCL), Joana Naritomi (LSE), and Johannes Spinnewijn (LSE).

For further information please contact Lubala Chibwe, either by email: l.chibwe@lse.ac.uk.

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