## Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience

_IMF Working Papers, March 8, 2024_

## Source details

**Canonical URL:** [Strengthening Income Stabilization through Social Protection in Emerging and Developing Economies: The Brazilian Experience](https://www.imf.org/en/publications/wp/issues/2024/03/08/strengthening-income-stabilization-through-social-protection-in-emerging-and-developing-545498)

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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

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### 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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_Source: https://www.imf.org/en/publications/wp/issues/2024/03/08/strengthening-income-stabilization-through-social-protection-in-emerging-and-developing-545498_