Influencing parliamentary debate on labour policy in Uruguay

June 08, 2016

The IDRC-supported “Labour markets for inclusive growth” project, coordinated by the Centre for Distributive Labor and Social Studies (CEDLAS) at Universidad Nacional de La Plata in Argentina, is generating rigorous and policy-relevant evidence on how labour markets and social protection work in Latin America — and what that means for growth and inclusion.

A recent study examined the effects of a large-scale expansion of employment-based benefits in Uruguay's social insurance system. The policy change entailed an expansion of health insurance to formal workers’ dependants. This reform significantly increased formal employment.

The study Labor informality and the incentive effects of social security: Evidence from a health reform in Uruguay was produced by Marcelo Bérgolo and Guillermo Cruces. It was awarded first prize for best research on social security by the Inter-American Conference on Social Security. It was also quoted by the Uruguayan Social Development Minister in a dialogue at the Uruguayan congress, when the congress was discussing the potential disincentive effects of social policies. The study has been presented in international conferences and was recently published in the Development Policy Review.

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