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Social Insurance, Informality, and Labor MarketsHow to Protect Workers While Creating Good Jobs$
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Markus Frölich, David Kaplan, Carmen Pagés, Jamele Rigolini, and David Robalino

Print publication date: 2014

Print ISBN-13: 9780199685233

Published to Oxford Scholarship Online: March 2015

DOI: 10.1093/acprof:oso/9780199685233.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 24 January 2022

The Evolution of Social Security Systems in Latin America*

The Evolution of Social Security Systems in Latin America*

(p.33) 2 The Evolution of Social Security Systems in Latin America*
Social Insurance, Informality, and Labor Markets

David S. Kaplan

Santiago Levy

Oxford University Press

This chapter reviews the evolution of social security institutions in Latin America, focusing on the reasons why past decisions regarding design, coverage, and financing were made. When social security systems in Latin America were founded, the hope was that the problem of labor informality would disappear over time thereby resolving the coverage problem. Once it became clear that the labor informality was not disappearing over time, many countries began implementing parallel systems in an attempt to fill the coverage gaps by offering protection to informal workers. Although each component of the social security architecture of many countries may be justifiable when analyzed individually, the chapter argues that the legacies of the incremental reform processes in many countries are social security systems with important design flaws when the various components are analyzed together.

Keywords:   social security, contributory system, Latin America, informal workers, labor

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