Social security programs generally seek to provide insurance and to reduce poverty and inequality. Providing insurance requires little redistribution. But reducing inequality and alleviating poverty do require redistribution. To reduce inequality, programs must redistribute income, but...

Labor market policies and institutions affect the success of economic reform but probably more for political than for economic reasons. Growth appears not to be hurt by minimum wages and mandatory benefits. But the relative size of organized labor (in government and elsewhere) is crucial

This paper shows that labor market policies and institutions have an impact on the effectiveness of economic reform programs. Countries with relatively 'rigid' labor markets experienced deeper recessions before adjustment and slower recoveries afterwards. Minimum wages and mandatory benefits are...