Feb 22 • 11:48 UTC 🇦🇷 Argentina La Nacion (ES)

Who pays for social charges? An analysis of incidence

The article examines who financially supports social charges in Argentina, emphasizing the differing perspectives between economists and non-economists.

The article discusses the critical question of who funds social charges within the formal economy in Argentina, particularly whether employers or employees bear the financial burden. The author highlights that the answer can vary significantly depending on whether the individuals answering are economists or not, as economists tend to use a certain analytical framework known as incidence analysis. This creates a divide in understanding the implications of social charges on different economic actors.

The piece references insights from Jean Carol Trepp McKelvey, an American academic who specialized in labor relations and arbitration. Her background and expertise contribute to a deeper understanding of the complexities surrounding social charges and their financing. By comparing scenarios with and without social charges, the article encourages readers to consider the broader implications of these policies for both employers and employees in the Argentine economy.

Ultimately, the analysis seeks to illuminate the conversation surrounding social charges, which are a critical aspect of social security funding in Argentina. It challenges readers to think critically about the equity of these charges and their impact on labor relations and economic conditions in the country.

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