Volume 44, Number 173,
April-June 2013
Towards a New Development Model?
From a Regulatory Perspective. Argentina 2003-2010
Ignacio de Angelis, Mariana Calvento and Mariano Roark
Institutional Forms: Salary Relations ( ...continuation )

Different measures were implemented, such as restoring the minimum wage (Minimum, Vital and Mobile Salary), reviving collective negotiations, approving the Labor Reorganization Law, regulating labor cooperatives, the Special Social Security Plan for Domestic Employees and strengthening control mechanisms, among others.

All of these measures sought to modify the inherited labor model, and were meant to recover quality and regulate employment in a broader strategy of social inclusion.

The next fundamental determining factor in this institutional form is the indirect salary, based on redistribution initiatives, social policies and legal mechanisms that sought to improve living conditions of the population and its laborers. These were implemented though protection and social security tools separate from those that directly follow the labor market.

These social protection tools were founded in the new architecture of social policy, based on a broad concept of human development, in contrast to neoliberal tenets. The new structure of social policies was thus based on two fundamental factors: labor and family. Of note is the set of novel policy initiatives began during the first Kirchnerist cycle and consolidated starting in 2008, such as broadening the universal scope of the retirement system and the Salary Mobility Law, the repro plan,11 and the state retaking control of and reforming the pension system.

Overall, by 2009 these transformations to the direct and indirect determinants of salary relations resulted in the recovery of social welfare levels from the neoliberal years of the 1990s, significantly reducing levels of indigence and poverty. (Figure 5). Per capita family income inequality expressed as the Gini coefficient also fell constantly throughout the entire period, going from 0.534 in 2003 to 0.442 in 2010.

However, the values achieved by social indicators were not as encouraging in historical terms when compared with the situation in the mid-1970s, when unemployment fell to 3.4%, only 4.4% of the population was considered in poverty and 2% indigent, with a Gini coefficient of 0.36%, when the gap between the poorest and richest deciles was merely a factor of 5.

Figure 5. Percentage of Persons in Conditions of Poverty and Indigence with Respect to the Total Population According to Estimates Based on the indec Price Index and the Price Indices of the 7 Provinces12
Source: Prepared by the authors based on indec and cifra data (2011).

11 The Productive Recovery Program from the Ministry of Labor grants a monthly sum of money to companies for each employee they maintain on the payroll instead of firing.

12 The intensification of inflation starting in 2006 resulted in indec intervention and a change in the methodology used to calculate official inflation. This produced an underestimate of the number of persons considered poor and indigent. Here we show two estimates: the official estimate and the estimate calculated by the ct based on the alternative inflationary index using the ipc-7, produced by the Center of Studies for Argentinean Development regarding information from the Statistical Offices of the Provinces from seven provinces, including Chubut, Entre Ríos, Jujuy, La Pampa, Neuquén, Río Negro and Salta, as they were not modified by the new indec methodology (Figure 6).

Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 192, January-March is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
CP 04510, México, D.F. Tel (52 55) 56 23 01 05 and (52 55) 56 24 23 39, fax (52 55) 56 23 00 97, www.probdes.iiec.unam.mx, revprode@unam.mx. Journal Editor: Alicia Girón González. Reservation of rights to exclusive use of the title: 04-2012-070613560300-203, ISSN: pending. Person responsible for the latest update of this issue: Minerva García, Circuito Maestro Mario de la Cueva s/n, Ciudad Universitaria, Coyoacán, CP 04510, México D.F., latest update: Feb 23th, 2018.
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