Abstract

NUNEZ M., Jairo. Labour market and social protection system in Colombia: Disincentives to work and progress. Perf. de Coyunt. Econ. [online]. 2010, n.16, pp.65-90. ISSN 1657-4214.

This article explores the possible disincentives to work offer caused by structural flaws in the design of the existing social protection programs, such as Familias en Acción and the subsidized system. It also identifies a vicious circle that environs Colombian economy since such social protection programs sustain an unproductive economic structure that results in high levels of poverty. Our methodology consists on analyzing Colombian labor marketand comparing the situations of unskilled workers in both formal and informal sectors. We find evidence about the existence of a strong incentive structure for informality associated to the dynamics of the social programs. The results of this research result in public policy recommendations that aim to reduce the levels of poverty and to overcome the underdevelopment situation of the country.

Keywords : Social protection; employment; informality; poverty; skilled labor force.

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