The effect of welfare payments on work in a middle-income country

Arbeitspapier

We study the impact of welfare payments in Ecuador on the probability that women and men work, and on whether they are employed in the formal or informal sectors. Our analysis is based on two distinct identification strategies and two separate sources of data spanning more than 10 years. We find no evidence that welfare discouraged work. However, among women, welfare payments led to reductions in social security contributions (which are mandated for salaried workers) and payment of VAT and income taxes (which are mandated for the self-employed and firm owners), although the magnitude of these effects is small.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IDB Working Paper Series ; No. IDB-WP-830

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Time Allocation and Labor Supply
• Subject: welfare ; work ; formality

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Araujo, María Caridad ; Bosch Mossi, Mariano ; Maldonado, Rosario ; Schady, Norbert Rüdiger
• Event: Veröffentlichung
• (who): Inter-American Development Bank (IDB)
• (where): Washington, DC
• (when): 2017

Further information

• DOI: doi:10.18235/0000809
• Handle: http://hdl.handle.net/10419/173883
• Last update: 10.03.2025, 11:43 AM CET