Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience
IMF Working Papers, March 8, 2024
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- Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience
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Bibliographic details
- Authors: Fernanda Brollo, Gabriel Lara Ibarra, Ricardo Campante Vale
- Published: March 8, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400266980.001
Study overview
- Authors: Fernanda Brollo, Gabriel Lara Ibarra, Ricardo Campante Vale
- Publication: IMF Working Papers 2024, 052 (Issue 052)
- Date: March 8, 2024
- Pages: 27
- Volume: 2024
- DOI: https://doi.org/10.5089/9798400266980.001
- Stock No: WPIEA2024052
- ISBN: 9798400266980
- ISSN: 1018-5941
Purpose and scope
- Assess the Auxilio Emergencial (AE) program's effectiveness in:
- Income stabilization during the COVID-19 pandemic
- Poverty reduction
- Inequality mitigation
- Evaluate the role of Brazil's pre-pandemic social protection system and digital tools in the crisis response.
Key findings
- The pre-pandemic social protection system would have only buffered about a quarter of income loss.
- Unemployment insurance played a more significant stabilizing role for higher-income households.
- Social safety net transfers were crucial for lower-income households, especially those in informal employment.
- AE successfully supported lower-income households during the pandemic.
- AE's generosity exceeded the stabilization of income, resulting in large fiscal costs.
Themes and implications
- Social protection programs are crucial for stabilizing household income, especially during crises.
- A resilient social safety net and digital tools enhance crisis response capacity.
- Targeting mechanisms and program design matter for the distributional impact across income groups and for fiscal costs.
Source: IMF Working Paper — Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience (March 8, 2024).
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