Design without delivery: analysing and rethinking social protection in Honduras

Andrés Ham

No wp-2025-101, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We analyse the disconnect between the intended design and actual outcomes of Honduras's social protection system. The current framework results in low coverage rates and limited redistribution, and imposes an implicit tax on formal activity. It also discourages productivity-enhancing decisions by workers and firms, contributing to the persistence of high informality and inequality. To address these issues and fulfil the objectives of social protection, we propose reforms which aim to expand coverage, improve equity, and strengthen incentives for workers and firms to comply with norms.

Keywords: Social protection; Redistribution; Reforms; Honduras (search for similar items in EconPapers)
Date: 2025
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