As for pensions, which are mostly non-contributory and welfare-based, their impact is mostly concentrated in lower-income strata (see figure 11.12). They therefore tend to be quite regressive, except in countries where formal employment and social security coverage are widespread, as in the cases of Argentina, Chile and Uruguay (see appendix, table II. The exception is unemployment insurance, which compensates for sudden drops in households’ incomes and acts as a protective mechanism against the vulnerability in well-being terms caused by job loss. Unfortunately, they do not have mass coverage and generally protect only formal wage-earners.