Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience
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Summary:
Social protection programs are crucial for stabilizing household income, especially during crises. Brazil's response to the pandemic, the Auxilio Emergencial (AE) program, demonstrated the value of a resilient social safety net and digital tools. This study assesses AE's effectiveness in income stabilization, poverty reduction, and inequality. Results show that the pre-pandemic social protection system would have only buffered about a quarter of income loss, with unemployment insurance more significant for higher-income households, and social safety net transfers crucial for lower-income households, especially those in informal employment. AE successfully supported lower-income households during the pandemic, but its generosity went beyond the stabilization of income, resulting in large fiscal costs.
Series:
Working Paper No. 2024/052
Subject:
COVID-19 Expenditure Health Income Labor Labor markets National accounts Social assistance spending Social protection spending
Frequency:
regular
English
Publication Date:
March 8, 2024
ISBN/ISSN:
9798400266980/1018-5941
Stock No:
WPIEA2024052
Format:
Paper
Pages:
27
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