Resource title information
Fabio M. Bertranou (2007). Informal Economy, Independent Workers and Social Security Coverage in Argentina, Chile and Uruguay.
Further detail
Publication type
Academic journal articles
Description
This article reviews the labour situation of independent workers
2
regarding social security
coverage in Argentina, Chile and Uruguay. These workers account for approximately 24 per
cent of the employed labour force and most of them work in the informal economy. The scope
of social protection for independent workers has become a relevant issue in the reform agendas
for the social security systems. Low coverage among this heterogeneous group of workers,
together with the difficulties of implementing effective policies and strategies that will allow for
increased coverage, have created the need to evaluate the different dimensions that are involved
in the design of social security programs. Even though Argentine and Uruguayan workers have
mandatory legal coverage through a general scheme and also a simplified scheme directed at
small contributors, the overall results have been poor. Furthermore, the Chilean Congress is
discussing a proposal to include mandatory contributions for non-salaried workers. This
document identifies and comments on several relevant issues associated with the design of
social security programs that may have various implications in terms of financing, coverage and
informality.
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