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  • 1
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy Notes
    Abstract: In this note we estimate the short-term economic impact of the COVID-19 crisis on Brazilian families vis-a-vis labor shocks. The analysis, using a microsimulation model which incorporates subnational shocks from a computable general equilibrium growth model, shows that over 30 million workers in Brazil may see significant reductions in their labor income in 2020 due to the COVID-19 pandemic. Two-thirds of these workers are informal workers or own-account workers, groups without access to unemployment protection. These household shocks would reduce average per capita income by 7.6 percent, with the largest impact on the second and third quintiles of the income distribution. These income shocks are inequality-increasing: without any mitigation measures, inequality would increase by 4 percent. The country's first line of defense, its existing unemployment insurance system, reduces the income shock to 5.3 percent. Even so, an additional 8.4 million Brazilians could fall into poverty. The policy responses announced by the government, and particularly the Auxilio Emergencial (AE) transfer, have the potential to fully absorb the labor income shock for the poorest 40 percent and reduce poverty. Yet, these results reflect annualized income, obscuring the sharp reduction in monthly income if demand shocks persist after the AE ends. Looking towards the next phase of the response, considering extensions of AE that are either less generous or more restricted provide a fiscally prudent approach for continuing to support Brazil's most vulnerable
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  • 2
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Social Protection and Labor Discussion Papers
    Keywords: Poverty Assessment ; Poverty Reduction ; Social Assessment ; Social Development ; Social Protections and Assistance ; Social Protections and Labor
    Abstract: As part of the ongoing debate on the modernization of the Bolsa Familia (BF) program, several reform proposals were presented through 2019, including by the Ministry of Citizenship (MoC), Congress and the think tank IPEA, the latter as part of a broader proposal to consolidate various expenditures. This note uses the BraSIM microsimulation model to evaluate the 2019 proposals in the context of Brazil's tax benefit system. All proposals lead to a higher number of beneficiaries, with the poorest families, especially children and youth, benefitting the most. In general, the progressive incidence of the current program would vary little in the MoC and Congress reforms, but is reduced in IPEA's, which includes a universal component. The three proposals have different contributions on poverty-reduction: IPEA's reform is significantly less efficient than the current scenario and other reforms in terms of cost-effectiveness. However, IPEA's proposal most contributes to the reduction of inequality, and is the only one that identifies financing sources through the extinction of more regressive expenditures. Through this comparative analysis, the Note also highlights the main dilemmas about the future of the program, which remain relevant even in the post-COVID-19 reality: the tension between generosity and coverage; the priorization of certain groups for poverty-reduction; reconciling the program's objective of encouraging human capital for children with its role of minimum income guarantee; the risks of eliminating a "basic benefit". While only IPEA's proposal identified financing sources for the program's expansion, the Note reveals additional potential sources of financing for the BF program in the tax benefit system
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  • 3
    Language: English
    Pages: 1 Online-Ressource (24 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Calvo-Gonzalez, Oscar How is the Slowdown Affecting Households in Latin America and the Caribbean?
    Abstract: This paper shows evidence that suggests the economic slowdown in Latin America and the Caribbean has already translated into slowing social gains, including decelerating poverty reduction, stagnating growth of the middle class, and lower income growth. The countries of South America outperformed Mexico, Central America, and the Caribbean in poverty reduction during the decade up to 2012. But since then, a new story has emerged. In recent years, poverty reduction has been disappointing across the entire region, which seems to be converging toward low growth with slow poverty reduction and stagnant inequality. However, this apparent convergence in poverty reduction is driven by diverging labor market patterns. In a reversal of the trends seen during the commodity boom, real wages have been falling in South America and rising in Mexico, Central America, and the Caribbean. As lower economic growth is likely, the new normal will pose challenges for policy makers, in protecting the gains achieved and for societies as they face a mismatch between expectations and actual social mobility
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 4
    Language: English
    Pages: 1 Online-Ressource (40 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cord, Louise Inequality Stagnation in Latin America in the Aftermath of the Global Financial Crisis
    Abstract: Over the past decade (2003-12), Latin America has experienced strong income growth and a notable reduction in income inequality, with the region's Gini coefficient falling from 55.6 to 51.8. Previous studies have warned about the sustainability
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 5
    Online Resource
    Online Resource
    [Washington, DC, USA] : World Bank Group, Poverty and Equity Global Practice
    Language: English
    Pages: 1 Online-Ressource (circa 32 Seiten) , Illustrationen
    Series Statement: Policy research working paper 9217
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Muller, Miriam She Helps Me All the Time: Underestimating Women's Economic Engagement in Rural Honduras
    Keywords: Graue Literatur
    Abstract: This study aims to understand women's engagement in economic activities in rural Honduras and why these activities may not be accurately reflected in official statistics. The study finds that women underreport their engagement in economic activities, including production for own consumption, production of market goods, and remunerated services and commerce. Simulations suggest that the rural female labor force participation rate in Honduras is likely to be underestimated by 6 to 23 percentage points. Two main explanations are found. First, women identify themselves (and are identified) primarily as housewives, and the concepts of housework and employment are taken as mutually exclusive. Second, given this duality between housework and employment, women define "employment" based on a set of necessary characteristics that exclude many of their own activities. Specifically, work needs to (i) be conducted physically outside the home; (ii) be in exchange for money; and (iii) entail sufficient time commitment. Importantly, these conditions are not binding constraints for men to identify their own activities as economic activity. These results have implications for understanding the low labor force participation of women in rural communities in countries beyond Honduras, suggesting that low rates obscure a significant amount of economic activity in many countries
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  • 6
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Systematic Country Diagnostics
    Series Statement: World Bank E-Library Archive
    Abstract: Honduras is Central America's second-largest country with a population of more than 8 million and a land area of about 112,000 square kilometers. The 20th century witnessed a profound economic transformation and modernization in Honduras. Honduras' persistent poverty is the result of long-term low per capita growth and high inequality, perpetuated by the country's high vulnerability to shocks. First, over the past 40 years the country has experienced modest growth rates marked by considerable volatility. Second, high levels of inequality have weakened the ability for growth to reduce poverty by limiting the extent to which a large segment of the population is able to fully access physical and human capital. Third, a large share of the population is vulnerable and exposed to regular shocks - both large and small which has exacerbated poverty by destroying or slowing asset accumulation. This systematic country diagnostic (SCD) explores the drivers of these development outcomes in Honduras, and reflects on the policy priorities that should underlie a development strategy focused on eradicating poverty and boosting shared prosperity. After identifying a number of critical factors affecting the country's development outcomes, the SCD concludes that there is a need for a comprehensive agenda that tackles simultaneously the problems that have kept the country in a low development equilibrium for many decades, as well as emerging challenges that have the potential not only to prevent progress but also worsen the current situation. The SCD also argues that the policy agenda needs to be ambitious and move away from marginal interventions in order to move Honduras from a situation where its economic potentials are just potentials to another where they become actuals
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 7
    ISBN: 9781464811050
    Language: English
    Pages: 1 Online-Ressource (218 p)
    Series Statement: Directions in Development - Public Sector Governance
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als
    Abstract: Central American countries spend approximately one percent of their aggregate gross domestic product subsidizing residential electricity consumption. This amount is comparable with what these countries spend on education and social assistance. The pressure that electricity subsidies exert on government budgets is particularly high when international energy prices rise. Electricity subsidies also provide perverse incentives for the overconsumption of electricity as households do not pay the true cost of their consumption, which in turn reduces incentives to increase energy efficiency. This book answers key questions regarding residential electricity subsidies in Central America. In particular: How do the subsidy mechanisms function in each country? What are their fiscal costs? Are these subsidies good value for the money? How efficient are subsidies in reaching households in need, and what drives this efficiency? What are the reform options? The main message of this book is that there is considerable scope for improving the efficiency of electricity subsidies in Central America by better targeting them to low-income households. The book shows that electricity subsidies help reduce the burden of electricity costs on the lowest-income groups. However, the existing electricity subsidy schemes are very inefficient at targeting resources to low-income households, with the majority of government spending going to higher-income households. Indeed, most countries in the region have the opportunity to significantly reduce the fiscal costs of electricity subsidies without imposing significant costs on households, particularly poor households. Given the limited fiscal space in the region and the major needs of the countries in terms of social services and physical infrastructure, this study seeks to provide Central American policymakers with the analytical foundations necessary to assess the costs and benefits of their electricity subsidy mechanisms, and design effective reform strategies that reflect their unique circumstances and policy priorities
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 8
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy Notes
    Abstract: This note aims to contribute to the debate, paying attention not only to changes in the Bolsa Familia program itself, but also by simulating the impact that general spending and tax reforms will have on the well-being of Brazilian families, whether they are poor or not. This last point is particularly relevant in the current fiscal context in which the country is inserted. There is an expenditure ceiling on public accounts that requires cuts in other budget lines in order to implement any expansion in the program. Finally, the note intends to contribute to the debate by elaborating alternatives to the design of the program so that it better meets its function as a social safety net
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  • 9
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy Notes
    Abstract: The Coronavirus (COVID-19) pandemic arrived in Brazil while the poorest forty percent of the population was still recovering from the 2014-2016 crisis. After boosting Latin America's reduction in poverty and inequality for the previous decade, Brazil's 2014-2016 crisis and recovery are a stark departure from the previous decade as Brazil's inclusive growth turned significantly regressive. As millions of jobs were lost, Brazil's expansive social protection system was unable to effectively serve as a countercyclical protection system. This note analyses the recently released household data from 2012 through 2019 to better understand the severity of the 2014-2016 crisis across income groups, as well as the uneven and slow recovery experienced following this crisis
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  • 10
    ISBN: 9781464816727
    Language: English
    Pages: 1 Online-Ressource (pages cm)
    Series Statement: Latin america and caribbean studies
    Parallel Title: Erscheint auch als
    Keywords: Coronavirus ; COVID-19 ; Economic Shock ; Fiscal Policy ; Labor Market ; Pandemic Impact ; Pandemic Response
    Abstract: A better policy framework for preventing, managing, and helping people recover from crises is crucial to lifting long-term growth and livelihoods in Latin America and the Caribbean (LAC). The need for this policy framework has never been more urgent as the region faces the monumental task of recovery from the worldwide COVID-19 pandemic. Whether specific policy responses will deliver the expected growth dividends will depend on the underlying vision of how labor markets adjust to crises and the quality of the policies enacted. This report estimates how crises change labor market flows, assesses how these changes affect people, and discusses the key policy responses--
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