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    Varieties of Economic Vulnerability: Evidence on Social Policy Preferences and Labor Informality from Mexico
    (Cambridge University Press (CUP), 2022-04-25) ; ;
    In many Latin American countries, social policy preferences among economically vulnerable citizens seem largely unpolarized. However, current studies rarely confront citizens with realistic policy options and often lack the required detail to capture the heterogeneity of economic vulnerability. Drawing on the dualization debate, we expect individuals facing different degrees of vulnerability to show distinct social policy preferences. Using original survey data from Mexico and a conjoint experiment, our findings reveal a complex divide, where the most economically vulnerable are least supportive of public solutions. Sharing the home with a formal labor market participant does not seem to mitigate social policy skepticism among the vulnerable. In contrast, magnified vulnerability via household composition reduces support for welfare policy expansion. Social policy preferences become much less distinct when policy design alternatives are introduced, suggesting reduced expectations about the state’s role and a lack of clarity about the tangible benefits of social policy reform.
    Wissenschaftlicher Artikel
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    Opting for Exit: Informalization, Social Policy Discontent, and Lack of Good Governance
    (Cambridge University Press (CUP), 2020-03-23)
    The informal sector challenges economic growth and hinders the abatement of income disparities in developing countries. This study argues that a weak and poorly governed welfare state can cause the informal sector to increase when individuals use it as an exit option from an unsatisfying welfare system. The article explores how the welfare state’s benefit structure and citizens’ trust in institutions to deliver public goods affect the likelihood of informality. A logistic hierarchical model, based on cross-sectional survey data from Latin America and the Caribbean and descriptive panel data from Brazil, is used to test the hypothesis. Findings reveal that social policy discontent, low trust, an elitist distribution of welfare benefits, and dysfunctional institutions increase the likelihood of being informally employed. However, workers with greater agency—the better-educated—seem notably less likely to informalize when social policy benefits are targeted toward their own socioeconomic group.
    Wissenschaftlicher Artikel
      139  215