CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

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on formal sector workers and only seldom t h e y provide non-


contributory pensions to informal sector workers and their families.


Furthermore, CEPAL (2005) suggests that the incidence of such


expenditure is becoming more progressive, though at different


speeds across the region, as shown by the increase in enrolments in


secondary education, greater access to health services, social


assistance and anti-poverty programs (see below).


Table 6. Incidence of government expenditure by quintile (18 countries over
selected years, 1997-2004) and concentration coefficients of public


expenditure by country subgroups


Source: Elaboration on CEPAL (2007a); Note: Group 1 includes Bolivia, El Salvador, Guatemala,
Honduras, Ecuador, Nicaragua, Paraguay, Peru; Group 2: Colombia, Dominican Republic, Mexico,
Panama, Venezuela; Group 3: Argentina, Brazil, Chile, Costa Rica, Uruguay.


As shown in Table 6 , social security expenditure is not


progressive, as it mainly covers formal sector workers with stable


employment. This raises the question of how can governments


best expand social security coverage, whether by actively


extending the formal s ector, or by setting up solidarity-based,


non-contributory, universal or targeted funds to provide basic


benefits to informal sector workers and their families. Bo t h


a pp r oach e s we re f ol lo wed in recent years, though the latter


has been more common. For instance, several LOC countries


introduced non-contributory social pensions to start addressing this


problem (Table 7).

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