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.
Published on May 19, 2022
In series:OECD Economics Department Working Papersview more titles