Social Security Reform and Personal Saving: Evidence from Brazil

Autor:	Pedro Tonon Zuanazzi, Marcos Vinicio Wink Junior, Adelar Fochezatto
Rok vydání:	2018
Předmět:	Social security Treated group Life-cycle hypothesis Population ageing Public economics Constitution As is media_common.quotation_subject Causal effect Face (sociological concept) Business media_common
Zdroj:	International Journal of Economics and Finance. 10:26
ISSN:	1916-9728 1916-971X
DOI:	10.5539/ijef.v10n9p26
Popis:	The population aging process has caused a financial imbalance in the social security systems of countries based on pay as you go system, as is the case in Brazil. To face this challenge, the Brazilian governments have undertaken several reforms since the 1988 Constitution. Confronting the life cycle hypothesis, the aim of this paper is to estimate the causal effects of Social Security Reforms on the Likelihood of Saving in Brazil by exploring two exogenous events, the 41th (of 2003) and 47th (of 2005) Constitutional Amendments, that reduced the expectations of benefits only for public servants. Using data from the House Budget Surveys, the results of differences-in-differences models show that the reform increased in a range of 2.1 to 2.9 percentage points in the probability of saving of the treated group. The results are in line with the recent literature indicating that reforms contribute to an increase in personal savings.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::3fd33519ccf103558279032e23eab9d7 https://doi.org/10.5539/ijef.v10n9p26 Zobrazit plný text záznamu