Main Conclusions
- The prolongation of social distancing measures has disrupted the labor market and affected employment and household income. The public debate regarding the continuation of the Emergency Basic Income (EBI) has become inevitable, both in society and Congress.
- Negotiations to reduce workload and wages, grounded under Provisional Measure (PM) 936, led to a drop of almost R$ 200 in per capita household income. Formal registered workers who were unable to access the Emergency Basic Income, were left without compensation for these losses.
- So far, despite pressure from Congress, the Federal Government is hesitant to extend the R$600 benefit. A reduction to R$ 200, as proposed by Minister Paulo Guedes, would push another 20 million people into poverty.
- The continuation of the R$600 benefit for another three months could be fully subsidized by an Emergency Social Contribution on High Incomes.
Work group responsible
Coordination: Ian Prates e Rogério J. Barbosa
Researchers:
- Sergio Simoni (UFRGS)
- Hellen Guicheney (CEM, CEBRAP)
- João Lucas Oliveira (USP)
- Carolina Requena (CEM)
- Paulo Flores (USP)
- Eduardo Lazzari (USP, CEM)
- Heloisa Fimiani (USP)
- Thiago Meireles (USP)
- Vitor Menezes (USP, CEBRAP)
- Jefferson Leal (USP)
Consultora:
- Úrsula Peres (USP)
