How effective are different social policies in Brazil? A simulation experiment:
Brazil spends around 15% of GDP on different social benefits, but within these expenditures, different benefits have different social impacts. While the small conditional cash transfer programme Bolsa Família is well-targeted to the poor and has a strong diminishing effect on inequality, pension be...
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| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Paris
OECD Publishing
2021
|
| Schriftenreihe: | OECD Economics Department Working Papers
no.1662 |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Zusammenfassung: | Brazil spends around 15% of GDP on different social benefits, but within these expenditures, different benefits have different social impacts. While the small conditional cash transfer programme Bolsa Família is well-targeted to the poor and has a strong diminishing effect on inequality, pension benefits largely reach those with above-median incomes. Over many years, and as a result of different indexation mechanisms, the real value of pension benefits has increased rapidly, while conditional cash transfers have struggled to keep pace with inflation. This paper presents a simulation experiment using household data to demonstrate the significant potential that changes in the annual benefit indexation mechanism of social security benefits could have had for reducing inequality. Maintaining the purchasing power of pension benefits while shifting the increased pension spending that resulted from automatic indexation towards conditional cash transfers would have allowed significantly stronger progress in reducing inequality. This strengthens the case for rethinking the current indexation mechanism of social security benefits in Brazil. |
| Beschreibung: | 1 Online-Ressource (11 p.) |
| DOI: | 10.1787/47087376-en |
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| spelling | Arnold, Jens Matthias VerfasserIn aut How effective are different social policies in Brazil? A simulation experiment Jens Matthias, Arnold and Matheus, Bueno Paris OECD Publishing 2021 1 Online-Ressource (11 p.) Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier OECD Economics Department Working Papers no.1662 Brazil spends around 15% of GDP on different social benefits, but within these expenditures, different benefits have different social impacts. While the small conditional cash transfer programme Bolsa Família is well-targeted to the poor and has a strong diminishing effect on inequality, pension benefits largely reach those with above-median incomes. Over many years, and as a result of different indexation mechanisms, the real value of pension benefits has increased rapidly, while conditional cash transfers have struggled to keep pace with inflation. This paper presents a simulation experiment using household data to demonstrate the significant potential that changes in the annual benefit indexation mechanism of social security benefits could have had for reducing inequality. Maintaining the purchasing power of pension benefits while shifting the increased pension spending that resulted from automatic indexation towards conditional cash transfers would have allowed significantly stronger progress in reducing inequality. This strengthens the case for rethinking the current indexation mechanism of social security benefits in Brazil. Economics Brazil Bueno, Matheus MitwirkendeR ctb FWS01 ZDB-13-SOC FWS_PDA_SOC https://doi.org/10.1787/47087376-en Volltext |
| spellingShingle | Arnold, Jens Matthias How effective are different social policies in Brazil? A simulation experiment Economics Brazil |
| title | How effective are different social policies in Brazil? A simulation experiment |
| title_auth | How effective are different social policies in Brazil? A simulation experiment |
| title_exact_search | How effective are different social policies in Brazil? A simulation experiment |
| title_full | How effective are different social policies in Brazil? A simulation experiment Jens Matthias, Arnold and Matheus, Bueno |
| title_fullStr | How effective are different social policies in Brazil? A simulation experiment Jens Matthias, Arnold and Matheus, Bueno |
| title_full_unstemmed | How effective are different social policies in Brazil? A simulation experiment Jens Matthias, Arnold and Matheus, Bueno |
| title_short | How effective are different social policies in Brazil? A simulation experiment |
| title_sort | how effective are different social policies in brazil a simulation experiment |
| topic | Economics Brazil |
| topic_facet | Economics Brazil |
| url | https://doi.org/10.1787/47087376-en |
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