The Brazilian social security program:diagnosis and proposal for reform

Hélio Oliveira Portocarrero de Castro, Luiz Guilherme Schymura de Oliveira, Renato Cardoso and Uriel de Magalhães

No 237, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: The Brazilian pay-as-you-go social security program is analyzed in a historical perspective. Its contribution to income inequality, and the role played by the inflation as a balancing variable are discussed. It is shown that budgetary constraints due to the increasing informalization of the labor force can no longer be reconciled with protligate eligibility criteria. A tailor-made proposal for reform is presented as well as a plan for financing the transition from today's system to the proposed one.

Date: 1994-05
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