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Politics
Economics

Argentina Seeks to Shift All-Cash Workers Into Payroll Jobs

  • Decree allows workers take formal jobs, keep welfare
  • Argentina’s informal job growth outpacing formal sector
Pedestrians walk past a vendor selling souvenirs on the street in Buenos Aires, Argentina.

Pedestrians walk past a vendor selling souvenirs on the street in Buenos Aires, Argentina.

Photographer: Erica Canepa/Bloomberg

Argentina etched out a job market program aimed at addressing informal labor as it seeks to lower government spending.  

A government decree Tuesday created the “puente” or bridge program by which social welfare recipients can continue to receive their handouts for a year after starting a formal, payroll job. The government will also cover all employer contributions during that period. The policy aims to target welfare recipients who opt for informal, all-cash jobs to avoid losing government benefits and persuade them to stay in the system.