Abstract

Brazil is still a young country, just starting the process of aging, but Brazil’s spending on social security is similar to those countries whose population aging has already occurred. Some studies explain the high cost of the Brazilian Social Security System due to the assumption that there is a positive relationship between social security and poverty alleviation. In fact, the effectiveness of this instrument as reducing poverty was high until 2002, but stopped growing and fell slightly thereafter. Brazilian law provides that wives and children or stepchildren under age 21, or under 25, since they are college students, are welfare beneficiaries. In other words they are protected by Brazilian Social Security System. However, data reveals that in Brazil, children and young people have a very low social security direct coverage, which increases with age and reaches high levels for individuals aged 60 or older. Children and young people are the groups most affected by poverty and extreme poverty in Brazil. In this sense, the assumption according to which Social Security helps combat family poverty is flawed. Considering these issues, this article aims to contribute to the debate on the need to rethink the Brazilian Social Security System and the need of construction of specific policies for children and young people in Brazil.

Highlights

  • IntroductionHow to cite this paper Tafner, P. and Botelho, C. (2014) Youth and Social Security Coverage in Brazil

  • Two of the most frequent concerns of the Brazilian Social Welfare analysts are the relatively low rate of pensionHow to cite this paper Tafner, P. and Botelho, C. (2014) Youth and Social Security Coverage in Brazil

  • Botelho coverage and high and persistent rate of non-contributory membership. These phenomena, are not restricted to Brazil and they are characteristic features of many developing countries, such as many Latin American countries as well as several African countries

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Summary

Introduction

How to cite this paper Tafner, P. and Botelho, C. (2014) Youth and Social Security Coverage in Brazil. Besides being a serious lack of social protection for a significant portion of our society, this phenomenon produces two highly undesirable effects: the first, is that it limits the financing capacity of the system requiring high burden on the set of social security taxpayers (workers and firms)—with obvious impacts on the cost of labor and the prices of our products; the second is that it produces—given the current rules of access and fixing the of benefit’s value—a numerous contingent of individuals who have never contribute to the social security will receive in the future benefits with no contribution This means that people who are in this situation will receive in the future social benefits whose values will be equal to those who throughout their working lives contributed for social security, creating an inequality in relation to the conditions for obtaining welfare income.

An Overview of Brazilian Social Security
The Direct Social Security Coverage
The Total Social Security Coverage
Challenges
Findings
Conclusions
Full Text
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