scholarly journals The Minimum Wage Campaign in Brazil and the Fight against Inequality

2015 ◽  
Vol 6 (3) ◽  
Author(s):  
Frederico Luiz Barbosa De Melo

<p>This article summarises the Brazilian experience on the minimum wage campaign and the results and challenges brought by the increase in real value of the minimum wage. In 2005 and 2006, the minimum wage in Brazil underwent significant increases, and in 2006 an agreement about a long-term process to elevate its purchasing power was established between the government and the labour union centrals; in 2011 the agreement became law, defining the per cent of adjustment and real increase until 1 January 2015, and this year the law will have to be reviewed. In the last decade, Brazilian income inequality diminished, and the gains of the minimum wage seem to have an effective role in this process. After describing briefly the trajectory and legislation of the minimum wage in Brazil, the article shows how many individuals receive the equivalent of one minimum wage, either in the labour market or as a social security benefit. Some data about the wage distribution and inequality are also presented and discussed. The process of increase of the purchasing power of the minimum wage is now at risk insofar as the economy slows down since, according to the law, its gain is determined by GDP growth. Other difficulties are set by the impacts of the increase of the minimum wage over social security expenditures. The high concentration of salaries between 1 and 1.5 minimum wage and the current value of 43.4% to the proportion between the minimum wage and the median wage of full-time workers signals a stronger resistance against the long-term improvement of the minimum wage in Brazil.</p>

2019 ◽  
Vol 2 (2) ◽  
pp. 165-174
Author(s):  
Randy Amsyari ◽  
Fajrin Satria Dwi Kesumah

Insurance for the workers means a guarantee of safety for their works on the workplaces. It is necessarily crucial as workers need such a policy that can protect them from the loss. Indonesian government declare a policy that enact the act about National Social Security System (SJSN). The companies are the subject of this regulation, despite the fact at the initial implementation of this law enforcement brought to the pros and cons. Hence, the regulation also regulates for those who betray the policy will have to pay some certain amount of fine which in turn can harden them. The companies on the other side have a choice either to register or not their workers to SJSN as they still consider the premium they have to pay. This study aims to analyze the payoffs for both government and companies to be better off from the law enforcement. Game theory perspective is applied for the methodology of the study, particularly Subgame Perfection Nash Equilibrium (SPNE) and Bayesian Nash Equilibrium (BNE). The results present that in condition of an effective law enforcement at p, the firms will be beneficial from the SJSN policy by registering their workers and pay the premium, because if they do not pay the premium they have to pay additional amount of fine. On the other hand, if the policy is not effective with 1-p, the firms will have an advantage by not registering their employees to the SJSN as the law enforcement is not effective. Also, the government does not necessarily conduct an investigation as the cost is higher than the return that they will get.


2008 ◽  
Vol 24 (10) ◽  
pp. 2396-2406 ◽  
Author(s):  
Luana Giatti ◽  
Sandhi Maria Barreto ◽  
Cibele Comini César

This study investigates whether employment with no social security, as well as short and long term unemployment are associated with worse health among Brazilians. The representative study sample was taken from two National Health Surveys and included men aged between 15 and 64 who lived in one of the eight metropolitan regions of Brazil in 1998 (n = 31,870) and 2003 (n = 32,887). Both surveys showed that full and part time workers with no social security, as well as those in short and long term (> 12 months) unemployment had worse health indicators, regardless of age or schooling, when compared with full-time workers (> 40 hours/week) who had some form of social security through their employment. Hepatic cirrhosis was the disease most strongly associated with labor market status. Its prevalence was higher among individuals in long term unemployment and those with no social security. Labor market status was also negatively associated with the use of health care services, especially medical visits. The present study shows that the absence of social security at work, unemployment and length of unemployment, characterize heterogeneous groups of individuals in relation to health. Results reinforce the need to incorporate labor market status in research into health inequalities.


1987 ◽  
Vol 114 (3) ◽  
pp. 467-550 ◽  
Author(s):  
S. Haberman

It is proposed to discuss the actuarial problems associated with the management of long-term sickness and invalidity benefits. The emphasis is on benefits provided by social security schemes (with particular reference to National Insurance benefit in the UK), but the main points are relevant to private sector benefits including permanent health insurance (PHI).The plan of the paper is as follows. We describe in Section 2 the nature of long-term invalidity benefit provided by the British social security system and then consider in Section 3 the problems associated with defining disability. A discussion of the differences between the incidence of morbidity and the making of an insurance claim leads to consideration of selection and moral hazard (Section 4). We then examine in Section 5 the methodology for analysing costs and estimating future costs with particular reference to the development within the Government Actuary's Department (GAD) of a model based on an incidence and survivorship approach to invalidity benefit and the debate aroused by CMI Report No. 7 on the same topic5. The paper then presents an analysis of recent trends in disability claim rates (Section 6) and incidence and termination rates (Sections 7 and 8) based on invalidity benefit within the British social security system, as well as PHI and the experience of other countries. Attempts are then made in Section 9 to explain these trends and the upward trend in financial costs for disability benefits experienced by many social security systems. The paper concludes with an examination of two areas of current interest, viz. sex differences in morbidity rates and claim rates (Section 10) and the relationship between claim rates and the prevailing level of unemployment (Section 11).


2014 ◽  
Vol 1 (2) ◽  
pp. 339-365 ◽  
Author(s):  
Guangdong XU

AbstractIt has long been argued that the legal system does not have a strong role in explaining China’s economic miracle; therefore, China is often presented as an anomaly for the “law matters” hypothesis. This study contributes to the debate from a unique perspective by examining the connection between law and the operation of factor markets. In China, laws and regulations governing factor markets have been systematically distorted by the government, intentionally or unintentionally, to facilitate the nation’s enormous economic growth in the short run at the cost of environmental quality, ordinary citizens’ welfare, and long-term economic health. Thus, China has become a fast-growing but unsustainable economy.


2005 ◽  
Vol 18 (1) ◽  
pp. 135-152 ◽  
Author(s):  
Daniel N. Shaviro

Recent U.S. tax cuts, to the extent that they involved a principled, long-term policy view, seem to have been aimed at shrinking the size of government. The idea apparently was to force eventual spending discipline, even (or perhaps especially) with respect to Social Security and Medicare, by turning reduced tax revenues into a political fact on the ground that would be difficult to reverse. In fact, however, the idea that the tax cuts would make the government smaller seems to have rested on spending illusion, or confusion between the actual size of government, in terms of its allocative and distributional effects, and the observed dollar flows that are denominated ‘taxes’ and ‘spending’.Given the long-term budget constraint, which holds that government inflows and outlays must ultimately be equal in present value, and the huge preexisting fiscal imbalance, the tax cuts are likely to be paid for, in the main, through some combination of future tax increases and cuts to Social Security and Medicare. (Other government spending cuts, relative to the case where the tax cuts were not enacted, are likely as well, but cannot contribute nearly enough.) To the extent that the 2001 through 2003 tax cuts lead to future tax increases, the combined effect is likely to make the government bigger both allocatively and distributionally. To the extent that Social Security and Medicare spending bear the brunt, the government still gets larger in the sense of increasing redistribution from younger to older generations, although Medicare cuts might decrease the size of government allocatively.


2008 ◽  
Vol 3 ◽  
pp. 1-37
Author(s):  
Vivienne Bath

AbstractChina has taken an original and adventurous approach to the issue of over-regulation through the promulgation of the Administrative Licensing Law, which attempts to limit the number and type of licences and approvals which citizens and enterprises are obliged to obtain from the government. The Administrative Licensing Law has now been in effect for 3 years, and it is therefore an appropriate time to look at licensing and approvals in China. The article focuses on issues relating to the establishment and reduction of licensing requirements, including the actions taken by government to reduce them, the existence of “non-administrative” licensing and approval requirements and issues relating to enforcement. It concludes that although substantial progress has been made, improvements could be made in terms of dealing with the complexity of the system and providing new avenues for enforcement, and that a long-term on-going effort will be required to implement the law fully.


2000 ◽  
Vol 29 (2) ◽  
pp. 263-279 ◽  
Author(s):  
PETER A. KEMP

Following the 1997 general election in Britain, the New Labour government made clear its intention to cut back and radically reform the social security system, including Housing Benefit, an income-related housing allowance for low-income tenants. The cost of Housing Benefit had doubled in real terms over the previous decade and was taking up a growing share of social security expenditure. The scheme also suffered from major deficiencies. Drawing on recent literature on welfare state retrenchment, this article examines why the government eventually retreated from cuts and a wholesale reform of Housing Benefit and opted instead for a more modest and long-term approach.


2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Yulizar D Sanrego

Minimum Wage (MW) is a policy set by the government as a basis reference at labor market for every company to pay their workers wages. Since workers always have a low bargaining position when dealing with employers in the determination of their wage rates, therefore the MW could becomes the safety net for workers to have "decent living" when he began to enter the world of work. In the case of Indonesia, the formulation of WM is referring to the parameters of Decent Living Needs (DLN) according to the Ministry of Manpower Decree No. 13, the year 2012. There are at least seven components in order to formulate MW within the DLN Framework, namely: (1) food and beverages, (2) clothing/apparel (3) housing, (4) education, (5) health, (6) transportation and (7) recreation and savings. Meanwhile, in Islam, every transaction made must be ensured preserve and achieve maqashid al sharia (sharia objectives): (1) religion/faith, (2) life, (3) intellect, (4) posterity, and (5) property. Using content analysis, the paper indicates that the regulation above is relevant to the conditions and objectives of sharia-based wage system (maqashid sharia). The Decent Living Needs (DLN)-based minimum wage setting which operated in the 60 components meet the basic needs components of the workers for their daily life which includes the needs of education, health, recreation, and saving. Hence, another challenge in relation to the DLN is how to ensure that the purchasing power of labor for their shelter within the existing MW formulation. What kind of shelter that considered as al dharuriyah within the existing MW setting. Therefore, there is a call for synergy between the government and the housing industry that can offer shelter in accordance with the purchasing power of labor with the existing level of MW and feasible within the framework of DLN so that might be considered as social policy elements. =========================================== Formulasi Upah Minimum dalam Perspektif Maqashid Syariah di Indonesia_______________________________________________ Upah Minimum (UM) merupakan kebijakan yang ditetapkan pemerintah sebagai dasar acuan di pasar tenaga kerja bagi setiap perusahaan. Pekerja dihadapkan pada posisi tawar yang rendah ketika berhadapan dengan pengusaha dalam penentuan tingkat upah mereka, oleh karena itu UM bisa menjadi jaring pengaman bagi pekerja untuk memiliki "kehidupan yang layak" ketika ia mulai memasuki dunia kerja. Dalam kasus Indonesia, perumusan UM mengacu pada parameter Kebutuhan Hidup Layak sesuai dengan Keputusan Menteri Tenaga Kerja Nomor 13, tahun 2012. Setidaknya, ada tujuh komponen perumusan MW dalam Kebutuhan Hidup Layak, yaitu: (1) makanan dan minuman, (2) pakaian / pakaian (3) perumahan, (4) pendidikan, (5) kesehatan, (6) transportasi dan (7) rekreasi dan tabungan. Sementara itu, dalam Islam setiap transaksi yang dilakukan harus dipastikan melestarikan dan mencapai maqashid al syariah (tujuan syariah): (1) agama / iman, (2) hidup, (3) kecerdasan, (4) anak cucu, dan (5) properti. Hasil analisa menunjukkan bahwa Keputusan Menteri Tenaga Kerja Nomor 13, tahun 2012 relevan dengan kondisi dan tujuan dari sistem upah berbasis syariah (maqashid syariah). Kebutuhan Hidup Layak berbasis penetapan upah minimum yang beroperasi di 60 komponen, memenuhi kebutuhan komponen dasar para pekerja untuk kehidupan mereka sehari-hari. Kebetuhan tersebut meliputi kebutuhan pendidikan, kesehatan, rekreasi dan tabungan. Tantangan yang harus dihadapi ialah bagaimana memastikan bahwa daya beli tenaga kerja dan jaminan tempat tinggal mereka dalam perumusan UM. Apa jenis hunian yang dianggap sebagai al dharuriyah dalam pengaturan UM yang ada. Oleh karena itu, diperlukan sinergisitas antara pemerintah dan industri perumahan dalam menawarkan perumahan sesuai dengan daya beli tenaga kerja dengan tingkat upah minimum sebagai elemen kebijakan sosial.


2001 ◽  
Vol 7 (5) ◽  
pp. 765-790 ◽  
Author(s):  
C.D. Daykin

ABSTRACTThe Government Actuary's Department (GAD) came into being in 1919, originally arising from the perceived importance of applying actuarial skills to the financing of the United Kingdom social security system. Whilst the GAD has changed considerably over the years, and now operates as a publicly owned consulting firm, social security and related policy and regulatory advice remain at the core of the Government Actuary's role. This paper explores the nature of the role of the GAD in the social security area, and provides examples of the scope of GAD reports on the long-term finances of the National Insurance Fund. A brief description is given of some of the other areas of GAD's work.


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