1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Filling in the gaps: Expanding social protection in Colombia

The pandemic has highlighted significant gaps in social protection, in particularamong informal workers. With around 60% of workers in informal jobs, many of those most in need of social protection are left behind. The government has attempted to fill this gap with non-contributory benefits, but coverage and benefit levels are low. Better-off formal workers have access to a full range of social protection benefits, involving large-scale public subsidies that widen the gap. Labour informality and social protection coverage are interlinked, as high social contributions are one of the main barriers to formal job creation. Ensuring some universal basic social protection, while simultaneously lowering the cost of formal employment, would reduce labour informality, poverty and inequality and raise productivity, all of which are long-standing challenges in Colombia.

English

Keywords: Colombia, social protection, pensions, health, informality, public policy, employment
JEL: J43: Labor and Demographic Economics / Particular Labor Markets / Agricultural Labor Markets; J32: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions; H55: Public Economics / National Government Expenditures and Related Policies / Social Security and Public Pensions; I14: Health, Education, and Welfare / Health / Health and Inequality; H53: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Welfare Programs; J65: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Unemployment Insurance; Severance Pay; Plant Closings; H51: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Health
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