Argentina: Macroeconomic Crisis and Household Vulnerability

15 Pages Posted: 20 Jan 2007

See all articles by Ana Corbacho

Ana Corbacho

International Monetary Fund (IMF) - Fiscal Affairs Department

Mercedes Garcia-Escribano

University of Chicago - Department of Economics

Gabriela Inchauste

World Bank

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Abstract

Using panel data from the Argentine Permanent Household Survey, this paper analyzes which households were more vulnerable to the Argentine macroeconomic crisis during 1999-2002. Results suggest that the impact of the crisis was not uniform across households, which differed in their ability to cope with shocks. In particular, households with more children, and whose head was male, less educated, and employed in the private sector were the most vulnerable, suffering larger than average declines in income. Shocks to labor income were significant, with both unemployment rates and unemployment spells increasing throughout the period, particularly during the peak of the crisis towards the end of 2001. Individuals with low levels of human capital (proxied by education and experience), males, and self-employed were more likely to lose their jobs. Public sector employees, in contrast, were more protected from the impact of the crisis on employment.

Suggested Citation

Corbacho, Ana and Garcia-Escribano, Mercedes and Inchauste Comboni, Maria Gabriela, Argentina: Macroeconomic Crisis and Household Vulnerability. Review of Development Economics, Vol. 11, No. 1, pp. 92-106, February 2007, Available at SSRN: https://ssrn.com/abstract=958423 or http://dx.doi.org/10.1111/j.1467-9361.2007.00384.x

Ana Corbacho (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Mercedes Garcia-Escribano

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

Maria Gabriela Inchauste Comboni

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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