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The political economy of the Workers’ Assitance Fund: an analysis of its recent performance (2005-2018)

Author

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  • Sandro Pereira Silva

    (Instituto de Pesquisas Econômicas Aplicadas – IPEA, Rio de Janeiro/RJ, Brasil.)

Abstract

This study analyzed the political and economic factors that conditioned the recent evolution of the public employment system in Brazil, focusing on the operational mechanisms of the Workers’ Assistance Fund (FAT). Based on the accounting information of the annual periods, it was found that such financing arrangement has shown signs of fragility, with a reduction in the capacity to cover all of its current expenses. However, the imbalances are largely explained by economic policy decisions that have caused significant leaks in recent years, especially budget disengagement and tax relief. JEL Classification: E22; E62; E65; H53; I38; J38; J68.

Suggested Citation

  • Sandro Pereira Silva, 2021. "The political economy of the Workers’ Assitance Fund: an analysis of its recent performance (2005-2018)," Brazilian Journal of Political Economy, Center of Political Economy, vol. 41(3), pages 588-610, July.
    • Handle: RePEc:ekm:repojs:v:41:y:2021:i:3:id:95044
    DOI: 10.1590/0101-31572021-3040
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    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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