Argentina’s Labor Reform Is a Step in the Right Direction

Marcos Falcone

On February 27, following the House of Representatives’ vote last week, the Argentine Senate passed a new labor reform bill promoted by Javier Milei’s administration. In a country where labor costs exceed the OECD average by over 50 percent, and informality affects over 40 percent of workers, the new law is intended to lower the cost of formal employment.

To that end, Milei’s labor reform slashes taxes by 85 percent for employers who hire new workers formally,...