Social protection coverage in Latin America: Aggregate and individual-level transformations

This paper analyzes the evolution of Latin American social protection systems during the inclusionary period from the beginning of the 2000s to the mid-2010s. Using microdata from household surveys across 17 countries, we build a traditional composite measure that provides a macro-level valuation of social protection (the Social Protection Aggregate Index, SPAI). We also propose an innovative index at the individual level (social protection deprivation index, SPDI) that measures deprivation in social protection using Alkire and Foster’s method. Both measures reveal significant improvements in social protection–through aggregate coverage and declines in individual deprivations–in all countries between 2002 and 2016. The change is mostly concentrated between 2002 and 2012. The most significant variations occurred in countries classified as intermediate in terms of social protection system development, whereas changes in countries from the least advantaged group were minimal. By providing quantitative comparative evidence through SPAI and SPDI, we contribute to improving our understanding of how aggregate-level changes in social protection affected individual experiences. They also provide a more nuanced assessment of how different groups of countries experienced the inclusionary period in such a heterogeneous region.