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DIE 01/16 - Transferencias de ingresos y mercado de trabajo: El impacto de Asignaciones Familiares Plan de Equidad sobre la informalidad laboral

Asignaciones Familiares – Plan de Equidad (AFAM-PE) is a conditional cash transfer program implemented in Uruguay since 2008. It consists of a cash transfer paid to households with children under 18 years old experiencing socioeconomic vulnerability. We analyze the impact of AFAM-PE on the probability of contributing to social security on the household’s adults. To this end, and considering that participation in the program is based on a vulnerability score, we apply
the Regression Discontinuity approach. We use a special survey (“Encuesta de Condiciones de Vida”) tailored for the evaluation of this program. This survey collects information about both eligible and ineligible program applicants with similar characteristics.

The main results of the analysis are similar to those found for similar programs carried on in different countries of Latin America. We found no evidence of significant effects of AFAM PE neither on participation rate, employment, nor hours worked. However, we find that AFAM PE has a negative effect of eleven percent points on average on the probability of contributing to socialsecurity. These effects fall mainly on those responsible for charging the transfer. Furthermore, heterogeneous effects are found, being young, women and members of nuclear families the most affected.
 
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