Every 1% increase in economic growth, employment increases 0,2%

The drop in unemployment rate that was reported by the INDEC occurred because many people stopped looking for a job. This is the result of the loss of capacity to create new jobs due to the low economic growth and the poor quality of labor institutions. The problems is not solved by inducing employers and unions to set their wages below the inflation level or using public funds to subsidize inactivity- such as the Asignación Universal por Hijo and the Progresar- but by improving the design of labor market institutions. 

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