Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience

The objective of the policy note is to inform reforms of the unemployment protection system of Brazil,through a comparison of its salient features with international benchmarks, and by taking stock of employment dynamics since the 2014 crisis. Reco...

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Main Authors: Morgandi, Matteo, Fietz, Katharina Maria, Ed, Malin Linnea Sofia, De Farias, Alison Rocha, Weber, Michael
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/570141612933174121/Enhancing-Coverage-and-Cost-effectiveness-of-Brazil-s-Unemployment-Protection-System-Insights-from-International-Experience
http://hdl.handle.net/10986/35168
id okr-10986-35168
recordtype oai_dc
spelling okr-10986-351682021-06-14T09:56:58Z Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience Morgandi, Matteo Fietz, Katharina Maria Ed, Malin Linnea Sofia De Farias, Alison Rocha Weber, Michael LABOR MARKET UNEMPLOYMENT PROTECTION SOCIAL PROTECTION EMPLOYMENT PROGRAM LABOR FORCE PARTICIPATION UNEMPLOYMENT BENEFIT The objective of the policy note is to inform reforms of the unemployment protection system of Brazil,through a comparison of its salient features with international benchmarks, and by taking stock of employment dynamics since the 2014 crisis. Recommendations include varying degrees of ambition (and political complexity), from parametric reforms of the unemployment insurance Seguro Desemprego (SD) to more systemic reorganization of programs, and the extension of coverage to growing shares of nondependent workers. The note builds on prior analysis of Brazil’s labor market programs undertaken as part of the World Bank’s expenditure review for Brazil (published World Bank 2018). The main novelties include a broader and deeper international benchmarking, as well as analysis of the unemployment dynamics since 2015, which are important to inform the optimal redesign of unemployment programs. The note was developed before the COVID-19 pandemic, and, while it takes stock of recent trends, it is not meant to be an assessment of Brazil’s emergency response or do justice to the emerging literature and data on the matter. As Brazil prepares for its economic recovery, the note aims to provide valuable information for a national policy debate around the much-needed modernization of the unemployment protection system. The note is organized as follows. The first part of the note takes stock of some of the key characteristics of Brazil’s labor market and unemployment dynamics since the 2014 economic crisis using the National Household Sample Survey Pesquisa Nacional por Amostra de Domicílios Contínua (PNADc) survey data. The centerpiece of the analysis is the comparison of the design features of SD to a range of international programs of reference countries, through a benchmarking exercise of its regulation, generosity, activation measures, and effective coverage rate. The final part of this note summarizes the key findings and provides recommendations. 2021-02-23T20:11:56Z 2021-02-23T20:11:56Z 2020-12 Report http://documents.worldbank.org/curated/en/570141612933174121/Enhancing-Coverage-and-Cost-effectiveness-of-Brazil-s-Unemployment-Protection-System-Insights-from-International-Experience http://hdl.handle.net/10986/35168 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Social Protection Study Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic LABOR MARKET
UNEMPLOYMENT PROTECTION
SOCIAL PROTECTION
EMPLOYMENT PROGRAM
LABOR FORCE PARTICIPATION
UNEMPLOYMENT BENEFIT
spellingShingle LABOR MARKET
UNEMPLOYMENT PROTECTION
SOCIAL PROTECTION
EMPLOYMENT PROGRAM
LABOR FORCE PARTICIPATION
UNEMPLOYMENT BENEFIT
Morgandi, Matteo
Fietz, Katharina Maria
Ed, Malin Linnea Sofia
De Farias, Alison Rocha
Weber, Michael
Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
geographic_facet Latin America & Caribbean
Brazil
description The objective of the policy note is to inform reforms of the unemployment protection system of Brazil,through a comparison of its salient features with international benchmarks, and by taking stock of employment dynamics since the 2014 crisis. Recommendations include varying degrees of ambition (and political complexity), from parametric reforms of the unemployment insurance Seguro Desemprego (SD) to more systemic reorganization of programs, and the extension of coverage to growing shares of nondependent workers. The note builds on prior analysis of Brazil’s labor market programs undertaken as part of the World Bank’s expenditure review for Brazil (published World Bank 2018). The main novelties include a broader and deeper international benchmarking, as well as analysis of the unemployment dynamics since 2015, which are important to inform the optimal redesign of unemployment programs. The note was developed before the COVID-19 pandemic, and, while it takes stock of recent trends, it is not meant to be an assessment of Brazil’s emergency response or do justice to the emerging literature and data on the matter. As Brazil prepares for its economic recovery, the note aims to provide valuable information for a national policy debate around the much-needed modernization of the unemployment protection system. The note is organized as follows. The first part of the note takes stock of some of the key characteristics of Brazil’s labor market and unemployment dynamics since the 2014 economic crisis using the National Household Sample Survey Pesquisa Nacional por Amostra de Domicílios Contínua (PNADc) survey data. The centerpiece of the analysis is the comparison of the design features of SD to a range of international programs of reference countries, through a benchmarking exercise of its regulation, generosity, activation measures, and effective coverage rate. The final part of this note summarizes the key findings and provides recommendations.
format Report
author Morgandi, Matteo
Fietz, Katharina Maria
Ed, Malin Linnea Sofia
De Farias, Alison Rocha
Weber, Michael
author_facet Morgandi, Matteo
Fietz, Katharina Maria
Ed, Malin Linnea Sofia
De Farias, Alison Rocha
Weber, Michael
author_sort Morgandi, Matteo
title Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
title_short Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
title_full Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
title_fullStr Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
title_full_unstemmed Enhancing Coverage and Cost-effectiveness of Brazil’s Unemployment Protection System : Insights from International Experience
title_sort enhancing coverage and cost-effectiveness of brazil’s unemployment protection system : insights from international experience
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/570141612933174121/Enhancing-Coverage-and-Cost-effectiveness-of-Brazil-s-Unemployment-Protection-System-Insights-from-International-Experience
http://hdl.handle.net/10986/35168
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