Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution
This technical report analyzes the potential effects of the pensions and income protection systems on labor supply decisions and through this channel the coverage and cost of the programs. The report addresses five policy questions: (i) how is the...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2009/12/16465545/brazil-social-insurance-labor-supply-assessing-incentives-redistribution http://hdl.handle.net/10986/12667 |
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okr-10986-12667 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACTIVE LABOR ACTIVE LABOR MARKETS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH ANNUITY AVERAGE WAGE AVERAGE WAGES BANK ACCOUNT BARGAINING BARGAINING POWER BENEFIT FORMULA BENEFIT FORMULAS CONSUMPTION SMOOTHING CONTINGENT LIABILITIES CONTRIBUTION PERIOD CONTRIBUTION RATE CREDIT CONSTRAINTS DEFINED BENEFIT DEPOSIT DISABILITY PENSIONS DISCOUNT RATE DISMISSAL EARLY RETIREMENT EARNING ECONOMIC EFFICIENCY ELDERLY EMPLOYEE EMPLOYMENT DURATION EMPLOYMENT GENERATION EMPLOYMENT INCREASES EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT RATE EXPENDITURE EXPENDITURES FINANCES FINANCIAL SUSTAINABILITY FINDING JOBS FISCAL BURDEN FORMAL SECTOR WORKERS FULL-CAREER WORKERS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GROSS DOMESTIC PRODUCT GROSS REPLACEMENT RATE GROSS REPLACEMENT RATES GROSS WAGE GROWTH RATE GUARANTEE FUND HEALTH INSURANCE HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN DEVELOPMENT IMPLICIT INTEREST IMPLICIT SUBSIDIES IMPLICIT SUBSIDY IMPLICIT TAX IMPLICIT TAXES INCOME INCOME LEVELS INCOME REDISTRIBUTION INCOME TAX INCOMES INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMAL SECTOR WORKERS INFORMAL SECTORS INTEREST RATE INTEREST RATES INTERGENERATIONAL TRANSFERS INTERNAL RATE OF RETURN INTERNAL RATES OF RETURN INTERNATIONAL STANDARDS JOB DESTRUCTION JOB DESTRUCTION RATES JOB SEARCH JOB SEARCH PROCESS JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR FORCE LABOR FORCE GROWTH LABOR FORCE PARTICIPATION LABOR INCOME LABOR INPUT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LEVY LIFE EXPECTANCIES LIFE EXPECTANCY MALE WORKERS MANDATORY SAVINGS MANDATORY SCHEMES MANDATORY SYSTEM MARGINAL COST MATERNITY BENEFITS MINIMUM WAGE MINIMUM WAGES MOTIVATION OCCUPATION OLD-AGE PENSIONS OLDER WORKERS OUTPUT PAY-AS-YOU-GO SYSTEM PAYROLL TAXES PENSION PENSION BENEFIT PENSION BENEFITS PENSION LIABILITIES PENSION SYSTEM PENSION SYSTEMS PENSION WEALTH PENSIONS PRESENT VALUE PREVIOUS SECTION PREVIOUS STUDIES PRIVATE SECTOR PRIVATE SECTOR WORKERS PRODUCTION UNITS PRODUCTIVITY LEVELS PROGRAM COSTS PUBLIC PENSION PUBLIC TRAINING PROGRAMS RATE OF RETURN REAL INTEREST REAL INTEREST RATE REAL WAGE REAL WAGES REFORM PROGRAMS RESERVES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT DECISION RETIREMENT DECISIONS RETURNS RISK POOLING RURAL WORKERS SAFETY SAFETY NET SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS CAPACITY SAVINGS RATES SELF EMPLOYED SELF EMPLOYMENT SELF-EMPLOYMENT SERVANTS SERVICE SECTOR SEVERANCE PAY SMALL BUSINESS SOCIAL ASSISTANCE SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL INSURANCE PROGRAMS SOCIAL INSURANCE SYSTEM SOCIAL PENSIONS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY SYSTEM TAX TRANSITION COUNTRIES TURNOVER UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT INSURANCE SYSTEM UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UNFUNDED PENSION UNINTENDED CONSEQUENCE UNINTENDED CONSEQUENCES WAGE BILL WAGE PREMIUM WAGE PREMIUMS WAREHOUSE WORKER WORKERS YOUNG WORKERS |
| spellingShingle |
ACTIVE LABOR ACTIVE LABOR MARKETS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH ANNUITY AVERAGE WAGE AVERAGE WAGES BANK ACCOUNT BARGAINING BARGAINING POWER BENEFIT FORMULA BENEFIT FORMULAS CONSUMPTION SMOOTHING CONTINGENT LIABILITIES CONTRIBUTION PERIOD CONTRIBUTION RATE CREDIT CONSTRAINTS DEFINED BENEFIT DEPOSIT DISABILITY PENSIONS DISCOUNT RATE DISMISSAL EARLY RETIREMENT EARNING ECONOMIC EFFICIENCY ELDERLY EMPLOYEE EMPLOYMENT DURATION EMPLOYMENT GENERATION EMPLOYMENT INCREASES EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT RATE EXPENDITURE EXPENDITURES FINANCES FINANCIAL SUSTAINABILITY FINDING JOBS FISCAL BURDEN FORMAL SECTOR WORKERS FULL-CAREER WORKERS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GROSS DOMESTIC PRODUCT GROSS REPLACEMENT RATE GROSS REPLACEMENT RATES GROSS WAGE GROWTH RATE GUARANTEE FUND HEALTH INSURANCE HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN DEVELOPMENT IMPLICIT INTEREST IMPLICIT SUBSIDIES IMPLICIT SUBSIDY IMPLICIT TAX IMPLICIT TAXES INCOME INCOME LEVELS INCOME REDISTRIBUTION INCOME TAX INCOMES INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMAL SECTOR WORKERS INFORMAL SECTORS INTEREST RATE INTEREST RATES INTERGENERATIONAL TRANSFERS INTERNAL RATE OF RETURN INTERNAL RATES OF RETURN INTERNATIONAL STANDARDS JOB DESTRUCTION JOB DESTRUCTION RATES JOB SEARCH JOB SEARCH PROCESS JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR FORCE LABOR FORCE GROWTH LABOR FORCE PARTICIPATION LABOR INCOME LABOR INPUT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LEVY LIFE EXPECTANCIES LIFE EXPECTANCY MALE WORKERS MANDATORY SAVINGS MANDATORY SCHEMES MANDATORY SYSTEM MARGINAL COST MATERNITY BENEFITS MINIMUM WAGE MINIMUM WAGES MOTIVATION OCCUPATION OLD-AGE PENSIONS OLDER WORKERS OUTPUT PAY-AS-YOU-GO SYSTEM PAYROLL TAXES PENSION PENSION BENEFIT PENSION BENEFITS PENSION LIABILITIES PENSION SYSTEM PENSION SYSTEMS PENSION WEALTH PENSIONS PRESENT VALUE PREVIOUS SECTION PREVIOUS STUDIES PRIVATE SECTOR PRIVATE SECTOR WORKERS PRODUCTION UNITS PRODUCTIVITY LEVELS PROGRAM COSTS PUBLIC PENSION PUBLIC TRAINING PROGRAMS RATE OF RETURN REAL INTEREST REAL INTEREST RATE REAL WAGE REAL WAGES REFORM PROGRAMS RESERVES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT DECISION RETIREMENT DECISIONS RETURNS RISK POOLING RURAL WORKERS SAFETY SAFETY NET SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS CAPACITY SAVINGS RATES SELF EMPLOYED SELF EMPLOYMENT SELF-EMPLOYMENT SERVANTS SERVICE SECTOR SEVERANCE PAY SMALL BUSINESS SOCIAL ASSISTANCE SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL INSURANCE PROGRAMS SOCIAL INSURANCE SYSTEM SOCIAL PENSIONS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY SYSTEM TAX TRANSITION COUNTRIES TURNOVER UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT INSURANCE SYSTEM UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UNFUNDED PENSION UNINTENDED CONSEQUENCE UNINTENDED CONSEQUENCES WAGE BILL WAGE PREMIUM WAGE PREMIUMS WAREHOUSE WORKER WORKERS YOUNG WORKERS World Bank Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| geographic_facet |
Latin America & Caribbean Brazil |
| description |
This technical report analyzes the
potential effects of the pensions and income protection
systems on labor supply decisions and through this channel
the coverage and cost of the programs. The report addresses
five policy questions: (i) how is the pension system
influencing decisions regarding entry into the labor market,
sector choice (formal/informal), and retirement? (ii) How
are current income protection programs affecting turnover;
job search efforts and sector choice?; (iii) Are there
interactions between the two systems that aggravate or
mitigate incentive effects?; (iv) What is the role of
redistributive policies in determining observed outcomes?;
and (v) Are there policy interventions that could be
considered to correct incentives, while securing adequate
income protection for different population groups (including
workers in the informal sector)? The report is organized in
three sections. This first section discusses the
motivations for the study and sets the context by briefly
describing some key stylized facts about the Brazilian labor
market. The focus is on the composition of the labor force,
its distribution by occupational categories, unemployment
risks, and transitions between employment states including
workers flows between the formal and informal sectors. The
second section analyzes the Brazilian social insurance
system in terms of incentives and redistribution. It starts
with an overview of institutional arrangements, programs,
and financing mechanisms, which flags the problem of a high
tax-wedge. The report then analyzes the rules of the
pensions and income protection systems and their potential
effects on behaviors. The final section proposes a policy
framework to guide reforms that could 'correct'
incentives by making redistribution more transparent and
progressive. A behavioral life-cycle model estimated for
Brazil is used to illustrate how the application of this
framework could affect contribution densities (and therefore
the time spent working in formal sector jobs), retirement
ages, savings, and programs cost. A companion policy note
on social insurance and labor supply summarizes the main
conclusions and recommendations from the analysis. |
| format |
Economic & Sector Work :: Other Social Protection Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| title_short |
Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| title_full |
Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| title_fullStr |
Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| title_full_unstemmed |
Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution |
| title_sort |
federative republic of brazil - social insurance and labor supply : assessing incentives and redistribution |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2009/12/16465545/brazil-social-insurance-labor-supply-assessing-incentives-redistribution http://hdl.handle.net/10986/12667 |
| _version_ |
1764421999682125824 |
| spelling |
okr-10986-126672021-04-23T14:03:05Z Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution World Bank ACTIVE LABOR ACTIVE LABOR MARKETS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH ANNUITY AVERAGE WAGE AVERAGE WAGES BANK ACCOUNT BARGAINING BARGAINING POWER BENEFIT FORMULA BENEFIT FORMULAS CONSUMPTION SMOOTHING CONTINGENT LIABILITIES CONTRIBUTION PERIOD CONTRIBUTION RATE CREDIT CONSTRAINTS DEFINED BENEFIT DEPOSIT DISABILITY PENSIONS DISCOUNT RATE DISMISSAL EARLY RETIREMENT EARNING ECONOMIC EFFICIENCY ELDERLY EMPLOYEE EMPLOYMENT DURATION EMPLOYMENT GENERATION EMPLOYMENT INCREASES EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT RATE EXPENDITURE EXPENDITURES FINANCES FINANCIAL SUSTAINABILITY FINDING JOBS FISCAL BURDEN FORMAL SECTOR WORKERS FULL-CAREER WORKERS FUNDED SYSTEMS FUTURE PENSION FUTURE PENSIONS GROSS DOMESTIC PRODUCT GROSS REPLACEMENT RATE GROSS REPLACEMENT RATES GROSS WAGE GROWTH RATE GUARANTEE FUND HEALTH INSURANCE HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN DEVELOPMENT IMPLICIT INTEREST IMPLICIT SUBSIDIES IMPLICIT SUBSIDY IMPLICIT TAX IMPLICIT TAXES INCOME INCOME LEVELS INCOME REDISTRIBUTION INCOME TAX INCOMES INDIVIDUAL ACCOUNTS INFLATION INFLATION RATE INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMAL SECTOR WORKERS INFORMAL SECTORS INTEREST RATE INTEREST RATES INTERGENERATIONAL TRANSFERS INTERNAL RATE OF RETURN INTERNAL RATES OF RETURN INTERNATIONAL STANDARDS JOB DESTRUCTION JOB DESTRUCTION RATES JOB SEARCH JOB SEARCH PROCESS JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR FORCE LABOR FORCE GROWTH LABOR FORCE PARTICIPATION LABOR INCOME LABOR INPUT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SUPPLY LEVY LIFE EXPECTANCIES LIFE EXPECTANCY MALE WORKERS MANDATORY SAVINGS MANDATORY SCHEMES MANDATORY SYSTEM MARGINAL COST MATERNITY BENEFITS MINIMUM WAGE MINIMUM WAGES MOTIVATION OCCUPATION OLD-AGE PENSIONS OLDER WORKERS OUTPUT PAY-AS-YOU-GO SYSTEM PAYROLL TAXES PENSION PENSION BENEFIT PENSION BENEFITS PENSION LIABILITIES PENSION SYSTEM PENSION SYSTEMS PENSION WEALTH PENSIONS PRESENT VALUE PREVIOUS SECTION PREVIOUS STUDIES PRIVATE SECTOR PRIVATE SECTOR WORKERS PRODUCTION UNITS PRODUCTIVITY LEVELS PROGRAM COSTS PUBLIC PENSION PUBLIC TRAINING PROGRAMS RATE OF RETURN REAL INTEREST REAL INTEREST RATE REAL WAGE REAL WAGES REFORM PROGRAMS RESERVES RETIREES RETIREMENT RETIREMENT AGE RETIREMENT AGES RETIREMENT DECISION RETIREMENT DECISIONS RETURNS RISK POOLING RURAL WORKERS SAFETY SAFETY NET SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS CAPACITY SAVINGS RATES SELF EMPLOYED SELF EMPLOYMENT SELF-EMPLOYMENT SERVANTS SERVICE SECTOR SEVERANCE PAY SMALL BUSINESS SOCIAL ASSISTANCE SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL INSURANCE PROGRAMS SOCIAL INSURANCE SYSTEM SOCIAL PENSIONS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY SYSTEM TAX TRANSITION COUNTRIES TURNOVER UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT INSURANCE SYSTEM UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UNFUNDED PENSION UNINTENDED CONSEQUENCE UNINTENDED CONSEQUENCES WAGE BILL WAGE PREMIUM WAGE PREMIUMS WAREHOUSE WORKER WORKERS YOUNG WORKERS This technical report analyzes the potential effects of the pensions and income protection systems on labor supply decisions and through this channel the coverage and cost of the programs. The report addresses five policy questions: (i) how is the pension system influencing decisions regarding entry into the labor market, sector choice (formal/informal), and retirement? (ii) How are current income protection programs affecting turnover; job search efforts and sector choice?; (iii) Are there interactions between the two systems that aggravate or mitigate incentive effects?; (iv) What is the role of redistributive policies in determining observed outcomes?; and (v) Are there policy interventions that could be considered to correct incentives, while securing adequate income protection for different population groups (including workers in the informal sector)? The report is organized in three sections. This first section discusses the motivations for the study and sets the context by briefly describing some key stylized facts about the Brazilian labor market. The focus is on the composition of the labor force, its distribution by occupational categories, unemployment risks, and transitions between employment states including workers flows between the formal and informal sectors. The second section analyzes the Brazilian social insurance system in terms of incentives and redistribution. It starts with an overview of institutional arrangements, programs, and financing mechanisms, which flags the problem of a high tax-wedge. The report then analyzes the rules of the pensions and income protection systems and their potential effects on behaviors. The final section proposes a policy framework to guide reforms that could 'correct' incentives by making redistribution more transparent and progressive. A behavioral life-cycle model estimated for Brazil is used to illustrate how the application of this framework could affect contribution densities (and therefore the time spent working in formal sector jobs), retirement ages, savings, and programs cost. A companion policy note on social insurance and labor supply summarizes the main conclusions and recommendations from the analysis. 2013-03-12T19:13:35Z 2013-03-12T19:13:35Z 2009-12-30 http://documents.worldbank.org/curated/en/2009/12/16465545/brazil-social-insurance-labor-supply-assessing-incentives-redistribution http://hdl.handle.net/10986/12667 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Social Protection Study Economic & Sector Work Latin America & Caribbean Brazil |