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From right to reality : incentives, labor markets, and the challenge of universal social protection in Latin America and the Caribbean, Volume 1
Author:Ribe, Helena; Robalino, David A.; Walker, Ian; Country:Latin America; Caribbean;
Date Stored:2012/03/19Document Date:2012/03/13
Document Type:PublicationISBN:978-0-8213-8687-3
Language:EnglishRegion:Latin America & Caribbean
Report Number:67523Collection Title:Latin American development forum
Volume No:1  

Summary: This book looks at the problems facing social protection systems in the region in terms of low coverage of social insurance, a high degree of fragmentation, inequity, and redistributive arrangements that distort labor markets providing incentives for informal work or reducing incentives for labor participation and job search. The book argues that Latin American countries need to rethink Bismarkian systems, opening them up to all workers, under the same rules, and using an integrated pull of subsidies to top-up the contributions and or benefits of individuals with limited saving capacity, and to provide a minimum level of income to the poor. Thus, subsidies would be allocated based on means and not based on where individuals work. To this end, contributions to pensions, health, and unemployment insurance would need to be linked to benefits and the mandates of different programs harmonized. In addition, because enforcing participation in mandatory programs among the self-employed or informal employees is difficult, alternative institutional arrangements would need to be considered to nudge workers to register and contribute. The main conclusions and policy recommendations from "Right of Reality" are also presented in concise form in "Achieving Effective Social Protection for All in Latin America and the Caribbean."

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