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Social security effects on income distribution: a counterfactual analysis for Brazil

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  • Rodrigo Leandro de Moura
  • Jaime de Jesus Filho
  • Paulo S�rgio Braga Tafner
  • Ligia Helena da Cruz Ourives

Abstract

One of the reasons for the existence of social security systems is that they function as an income redistribution mechanism (Diamond, 1977). Nevertheless, there is no obvious consensus about this social security property. We test it to the Brazilian case and try to answer an additional question: is the trend of social security systems increasingly progressive or regressive? We conclude that the changes in Brazilian Social Security legislation reduced inequality between 1987 and 1996, but only for the elderly. For the other age groups, there is a stable trend. Results for the period between 1996 and 2006 reveal that the Brazilian system is neutral for all cohorts.

Suggested Citation

  • Rodrigo Leandro de Moura & Jaime de Jesus Filho & Paulo S�rgio Braga Tafner & Ligia Helena da Cruz Ourives, 2013. "Social security effects on income distribution: a counterfactual analysis for Brazil," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 631-637, May.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:7:p:631-637
    DOI: 10.1080/13504851.2012.725922
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    References listed on IDEAS

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    4. Feldstein, Martin & Liebman, Jeffrey B. (ed.), 2002. "The Distributional Aspects of Social Security and Social Security Reform," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226241067.
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    Cited by:

    1. COMANICIU Carmen, 2017. "Social Security Contributions In The European Union - Similarities And Differences," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(5), pages 22-34, December.
    2. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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