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Pension Reforms and Labor Decisions in Brazil

Institutions & Governance Brazil

Credit: Leonardo Martins

Increasing life expectancy combined with generosity of some government pension systems have created an urge for social security reforms in several countries in the past decade, most of which increased retirement age and decreased retirement benefits to discourage early retirement. This project aims to estimate the effects of such reforms on labor supply decisions in Brazil, focusing on both the intensive and extensive margins and expanding the analysis to identify effects on workers’ productivity. The project also sheds light on the effects of the pension reform on informality, which might be of great interest for public policy in developing countries where the informal sector corresponds to a substantial share of the economy.

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