Em busca de incentivos para atrair o trabalhador autônomo para Previdência Social

Abstract

This paper intends to show that economic incentives can affect the decisions of self-employed  people whether to join or not the Brazilian socialsecurity system using a Principal-Agent framework. Relaxation of the rules for low  income workers to access social security benefitspromoted by the Federal Constitution of 1988 provides a laboratory to test such a model. The empirical analysis, however, contradicts the expectations of the theoretical model. There is a general movement of withdrawal from the social security system yet this movement  is more pronounced at the richest self-employed group. In theoretical terms, this is explained by a violation of the incentive compatibility constraints. One possible explanation is that the increase in the availability of private pension funds in the market has created competition for the government system.