The Brazilian Social Security Program: Diagnosis and Proposal for Reform
AbstractThe 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 profligate 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.
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