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Social spending and income redistribution in Argentina during the 2000s: The rising noncontributory pensions

Nora Lustig () and Carola Pessino

No 5, Commitment to Equity (CEQ) Working Paper Series from Tulane University, Department of Economics

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.

Keywords: social spending; benefit incidence; inequality; poverty; Argentina (search for similar items in EconPapers)
JEL-codes: D31 H22 I38 (search for similar items in EconPapers)
Date: 2013-01, Revised 2013-08
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Published in Commitment to Equity, January 2013, pages 1-27

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http://repec.tulane.edu/RePEc/ceq/ceq05.pdf Revised version, 2013 (application/pdf)

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