## Argentina: Macroeconomic Crisis and Household Vulnerability

_IMF Working Papers, April 1, 2003_

## Source details

**Canonical URL:** [Argentina: Macroeconomic Crisis and Household Vulnerability](https://www.imf.org/en/publications/wp/issues/2016/12/30/argentina-macroeconomic-crisis-and-household-vulnerability-16415)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/argentina-macroeconomic-crisis-and-household-vulnerability-16415/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/argentina-macroeconomic-crisis-and-household-vulnerability-16415/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/argentina-macroeconomic-crisis-and-household-vulnerability-16415/bundle-manifest.json)

## Bibliographic details
- Authors: Gabriela Inchauste, Ana Corbacho, Mercedes Garcia-Escribano
- Published: April 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451851304.001

---

### Study objectives
- Construct a panel dataset from urban household surveys to study the effects of the Argentine macroeconomic crisis of 1999-2002.
- Aim to:
  - (1) identify the most vulnerable households,
  - (2) investigate whether employment in the public sector and government spending served to decrease vulnerability, and
  - (3) understand the mechanisms used by households to smooth the effects of the crisis.

### Key findings
- Vulnerable household characteristics:
  - Households whose heads were male, less educated, and employed in the construction sector were more vulnerable to the crisis.
  - These households experienced larger-than-average declines in income and higher dispersion.
- Public sector employment and government spending:
  - Households whose heads were employed in the public sector were more protected from the crisis.
  - Higher public spending did not serve to decrease household vulnerability.
- Employment dynamics:
  - A significant source of vulnerability was linked to changes in employment status.
  - The study examined determinants of the probability of being unemployed and of becoming unemployed.
- Income smoothing:
  - Households were unable to perfectly smooth income shocks.

### Mechanisms analyzed
- Employment status changes as a driver of vulnerability.
- Sources of household income and their role in absorbing shocks (explicitly studied: labor income, interest income, and other income sources as indicated by keywords).

### Policy implications and recommendations
- There is room for broadening social safety nets.
- Particular recommendation: expansion in the form of public works programs.

---

## Content in this bundle

- **Argentina:  Macroeconomic Crisis and Household Vulnerability - WP/03/89**
  - [Argentina:  Macroeconomic Crisis and Household Vulnerability - WP/03/89 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2003/_wp0389.pdf.md){rel="alternate" type="text/markdown"}
  - [Argentina:  Macroeconomic Crisis and Household Vulnerability - WP/03/89 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2003/_wp0389.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/argentina-macroeconomic-crisis-and-household-vulnerability-16415_