Non-contributory Public Spending in Latin America and the Caribbean
This paper presents new data documenting the level and evolution of public spending on non-contributory programs for 16 countries in Latin America and the Caribbean. Salaried formal workers contribute to social security and in return have access to an array of benefits -mainly old-age pensions and health services. In recent decades, informal workers – salaried and non-salaried- have gained access to similar benefits, financed through general revenues. Our calculations indicate that, on average, the region spends 1.7% of GDP in these programs.