Uruguay : Poverty Update 2003
After a decade of continuous growth, the Uruguayan economy experienced a recession over 1998-2001, with a deeper contraction registered in 2002 following the unraveling of the Argentinean crisis in late 2001, which culminated in default, and devalu...
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| Format: | Policy Note |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4966352/uruguay-poverty-update-2003 http://hdl.handle.net/10986/15682 |
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okr-10986-15682 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGED CAPITAL MARKETS CHILD DEVELOPMENT CONSUMPTION PATTERNS COST RECOVERY DATA AVAILABILITY DEBT DEREGULATION ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC MANAGEMENT ECONOMISTS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXTREME POVERTY FAMILIES FIELD WORK FINANCIAL SUPPORT FOOD BASKET FOOD CONSUMPTION GIRLS GOVERNMENT EXPENDITURES GROWTH RATE HEADCOUNT RATIO HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSING HUMAN CAPITAL INCOME INCOME COUNTRIES INCOME DISTRIBUTION INCOME GENERATION INCOME INEQUALITY INCOME LEVEL INCOME SHOCK INFLATION INFORMAL SECTOR INSURANCE INTEREST RATES LABOR MARKET LABOR MARKET REGULATIONS LIVING CONDITIONS LONG TERM MACROECONOMIC STABILITY MANAGERS MORTALITY NET WORTH NEW POOR POLICY ACTIONS POOR POOR CHILDREN POOR HOUSEHOLDS POVERTY ASSESSMENT POVERTY GAP POVERTY LINE POVERTY LINES POVERTY MEASUREMENT POVERTY PROFILE POVERTY REDUCTION POVERTY STATUS PRIMARY SCHOOL PRIVATE SECTOR PRODUCTIVITY PUBLIC ASSISTANCE PUBLIC EDUCATION PUBLIC ENTERPRISES PUBLIC EXPENDITURES PUBLIC POLICIES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC UTILITIES REAL WAGES REGULATORY FRAMEWORK RURAL AREAS SAFETY SAFETY NET SAVINGS SCHOOL GRADUATES SCHOOL SYSTEM SECTOR EMPLOYMENT SELF-EMPLOYED INDIVIDUALS SOCIAL ASSISTANCE SOCIAL INDICATORS SOCIAL POLICIES SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING STREAMS TARGETING TERTIARY EDUCATION UNEMPLOYED ADULTS UNEMPLOYMENT UNEMPLOYMENT RATES URBAN HOUSEHOLDS VULNERABLE GROUPS WAGE RIGIDITIES WAGES WORKERS |
| spellingShingle |
AGED CAPITAL MARKETS CHILD DEVELOPMENT CONSUMPTION PATTERNS COST RECOVERY DATA AVAILABILITY DEBT DEREGULATION ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC MANAGEMENT ECONOMISTS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXTREME POVERTY FAMILIES FIELD WORK FINANCIAL SUPPORT FOOD BASKET FOOD CONSUMPTION GIRLS GOVERNMENT EXPENDITURES GROWTH RATE HEADCOUNT RATIO HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSING HUMAN CAPITAL INCOME INCOME COUNTRIES INCOME DISTRIBUTION INCOME GENERATION INCOME INEQUALITY INCOME LEVEL INCOME SHOCK INFLATION INFORMAL SECTOR INSURANCE INTEREST RATES LABOR MARKET LABOR MARKET REGULATIONS LIVING CONDITIONS LONG TERM MACROECONOMIC STABILITY MANAGERS MORTALITY NET WORTH NEW POOR POLICY ACTIONS POOR POOR CHILDREN POOR HOUSEHOLDS POVERTY ASSESSMENT POVERTY GAP POVERTY LINE POVERTY LINES POVERTY MEASUREMENT POVERTY PROFILE POVERTY REDUCTION POVERTY STATUS PRIMARY SCHOOL PRIVATE SECTOR PRODUCTIVITY PUBLIC ASSISTANCE PUBLIC EDUCATION PUBLIC ENTERPRISES PUBLIC EXPENDITURES PUBLIC POLICIES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC UTILITIES REAL WAGES REGULATORY FRAMEWORK RURAL AREAS SAFETY SAFETY NET SAVINGS SCHOOL GRADUATES SCHOOL SYSTEM SECTOR EMPLOYMENT SELF-EMPLOYED INDIVIDUALS SOCIAL ASSISTANCE SOCIAL INDICATORS SOCIAL POLICIES SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING STREAMS TARGETING TERTIARY EDUCATION UNEMPLOYED ADULTS UNEMPLOYMENT UNEMPLOYMENT RATES URBAN HOUSEHOLDS VULNERABLE GROUPS WAGE RIGIDITIES WAGES WORKERS World Bank Uruguay : Poverty Update 2003 |
| geographic_facet |
Latin America & Caribbean Uruguay |
| description |
After a decade of continuous growth, the
Uruguayan economy experienced a recession over 1998-2001,
with a deeper contraction registered in 2002 following the
unraveling of the Argentinean crisis in late 2001, which
culminated in default, and devaluation in early 2002. The
recession had a deteriorating effect on poverty, and other
social indicators, although considered better than in the
majority of Latin American countries. Notably, increased
unemployment began in 1998 - unemployment, and
self-employment - was accompanied by a reduction in real
wages in the private sector. In addition, since 1999,
pensions, which constitute a sizeable portion of household
incomes, have been falling as well. Vulnerable groups were
the most affected, which are groups composed by households
in which the head is unemployed, employed in the informal
sector, or self-employed; crowded households; households
headed by construction sector workers; and, by individuals
with low educational attainment, or by young persons. There
are also some "new poor", notably individuals
living in households with intermediately educated heads.
This growth in poverty resulted from three broad factors: a)
higher incidence of unemployment, combined with longer
unemployment spells, and less hours worked, all of which
affected more the vulnerable segments; b) reductions in real
earnings originated by inflation, and the reduced rate of
increase in nominal remunerations. These were compounded by
occupational, and sectoral shifts in the labor market, that
contributed to the reduction of average earnings; and, c)
higher household income inequality. The government response
to the recession included many positive actions, in
particular, the existence of a firmly established, and
overall well designed set of social programs, including
social assistance, and, there are three programs that play
an important role in mitigating and coping with social
risks: an early child development program; a housing program
targeted to poor households in rural areas; and, a housing
program with similar characteristics, but targeted to urban
slums, introduced in 2000. Notwithstanding, some
fragmentation within institutions, and overlapping program
objectives across institutions, were found in some social
interventions. A key question arising from the analysis in
the Report is why nominal wages kept growing in the face of
reduced economic activity, forcing a significant quantity
adjustment of the labor market. Analyses of the effect of
policies showed, that public wage rigidities exerted a
negative, although small, impact on employment as a whole
until 2001, especially for intermediately educated
individuals, and those belonging to the three lowest
quintiles of the income distribution. The report finds that
both the public wage bill, and overall wage inequality would
be lower if, public workers earned accordingly with the
private pay structure. As noted in the final chapter,
however, a deeper analysis of the labor market is needed, to
assess other factors preventing adjustments in this market.
Currently, the existing evidence in this regard is contradictory. |
| format |
Economic & Sector Work :: Policy Note |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Uruguay : Poverty Update 2003 |
| title_short |
Uruguay : Poverty Update 2003 |
| title_full |
Uruguay : Poverty Update 2003 |
| title_fullStr |
Uruguay : Poverty Update 2003 |
| title_full_unstemmed |
Uruguay : Poverty Update 2003 |
| title_sort |
uruguay : poverty update 2003 |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4966352/uruguay-poverty-update-2003 http://hdl.handle.net/10986/15682 |
| _version_ |
1764428785916051456 |
| spelling |
okr-10986-156822021-04-23T14:03:18Z Uruguay : Poverty Update 2003 World Bank AGED CAPITAL MARKETS CHILD DEVELOPMENT CONSUMPTION PATTERNS COST RECOVERY DATA AVAILABILITY DEBT DEREGULATION ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC MANAGEMENT ECONOMISTS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXTREME POVERTY FAMILIES FIELD WORK FINANCIAL SUPPORT FOOD BASKET FOOD CONSUMPTION GIRLS GOVERNMENT EXPENDITURES GROWTH RATE HEADCOUNT RATIO HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSING HUMAN CAPITAL INCOME INCOME COUNTRIES INCOME DISTRIBUTION INCOME GENERATION INCOME INEQUALITY INCOME LEVEL INCOME SHOCK INFLATION INFORMAL SECTOR INSURANCE INTEREST RATES LABOR MARKET LABOR MARKET REGULATIONS LIVING CONDITIONS LONG TERM MACROECONOMIC STABILITY MANAGERS MORTALITY NET WORTH NEW POOR POLICY ACTIONS POOR POOR CHILDREN POOR HOUSEHOLDS POVERTY ASSESSMENT POVERTY GAP POVERTY LINE POVERTY LINES POVERTY MEASUREMENT POVERTY PROFILE POVERTY REDUCTION POVERTY STATUS PRIMARY SCHOOL PRIVATE SECTOR PRODUCTIVITY PUBLIC ASSISTANCE PUBLIC EDUCATION PUBLIC ENTERPRISES PUBLIC EXPENDITURES PUBLIC POLICIES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC UTILITIES REAL WAGES REGULATORY FRAMEWORK RURAL AREAS SAFETY SAFETY NET SAVINGS SCHOOL GRADUATES SCHOOL SYSTEM SECTOR EMPLOYMENT SELF-EMPLOYED INDIVIDUALS SOCIAL ASSISTANCE SOCIAL INDICATORS SOCIAL POLICIES SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING STREAMS TARGETING TERTIARY EDUCATION UNEMPLOYED ADULTS UNEMPLOYMENT UNEMPLOYMENT RATES URBAN HOUSEHOLDS VULNERABLE GROUPS WAGE RIGIDITIES WAGES WORKERS After a decade of continuous growth, the Uruguayan economy experienced a recession over 1998-2001, with a deeper contraction registered in 2002 following the unraveling of the Argentinean crisis in late 2001, which culminated in default, and devaluation in early 2002. The recession had a deteriorating effect on poverty, and other social indicators, although considered better than in the majority of Latin American countries. Notably, increased unemployment began in 1998 - unemployment, and self-employment - was accompanied by a reduction in real wages in the private sector. In addition, since 1999, pensions, which constitute a sizeable portion of household incomes, have been falling as well. Vulnerable groups were the most affected, which are groups composed by households in which the head is unemployed, employed in the informal sector, or self-employed; crowded households; households headed by construction sector workers; and, by individuals with low educational attainment, or by young persons. There are also some "new poor", notably individuals living in households with intermediately educated heads. This growth in poverty resulted from three broad factors: a) higher incidence of unemployment, combined with longer unemployment spells, and less hours worked, all of which affected more the vulnerable segments; b) reductions in real earnings originated by inflation, and the reduced rate of increase in nominal remunerations. These were compounded by occupational, and sectoral shifts in the labor market, that contributed to the reduction of average earnings; and, c) higher household income inequality. The government response to the recession included many positive actions, in particular, the existence of a firmly established, and overall well designed set of social programs, including social assistance, and, there are three programs that play an important role in mitigating and coping with social risks: an early child development program; a housing program targeted to poor households in rural areas; and, a housing program with similar characteristics, but targeted to urban slums, introduced in 2000. Notwithstanding, some fragmentation within institutions, and overlapping program objectives across institutions, were found in some social interventions. A key question arising from the analysis in the Report is why nominal wages kept growing in the face of reduced economic activity, forcing a significant quantity adjustment of the labor market. Analyses of the effect of policies showed, that public wage rigidities exerted a negative, although small, impact on employment as a whole until 2001, especially for intermediately educated individuals, and those belonging to the three lowest quintiles of the income distribution. The report finds that both the public wage bill, and overall wage inequality would be lower if, public workers earned accordingly with the private pay structure. As noted in the final chapter, however, a deeper analysis of the labor market is needed, to assess other factors preventing adjustments in this market. Currently, the existing evidence in this regard is contradictory. 2013-09-05T20:39:07Z 2013-09-05T20:39:07Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4966352/uruguay-poverty-update-2003 http://hdl.handle.net/10986/15682 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Latin America & Caribbean Uruguay |