The role of labour market and social protection in reducing inequality and eradicating poverty in Latin America

Latin America has experienced an unprecedented period of macroeconomic stability and high economic growth between 2003 and 2008. The main aim of this paper is to analyse to what extent these more favourable conditions have been an opportunity for Latin American countries to recover their labour markets and conduct a more active social policy. The paper discusses the contribution of the labour market and of the social protection system as effective mechanisms to overcome poverty and reduce income inequality. The conclusions state that, even though the labour market policy framework has changed, and now yields better outcomes, there are many more social and policy issues and challenges ahead than the ones that are usually acknowledged.