Brazil - The Contrato Verde Amarelo Wage Subsidy : An Initial Assessment

Morgandi, Matteo ; Fietz, Katharina ; Ed, Malin

World Bank, Washington, DC

关键词: WAGE SUBSIDY;    LABOR POLICY;    SOCIAL PROTECTION;    CORONAVIRUS;    COVID-19;   

RP-ID  :  AUS0001675

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In November 2019, the Braziliangovernment introduced, as part of an employment stimuluspackage, the Contrato Verde Amarelo (CVA), a wage subsidyprogram for young first-time employees entering in contractsof up to 1.5 minimum wages. Despite CVA did not pass thefinal senate vote and, consequently, lost its validity, therelevance of this measure remains in light of Brazil’s highlabor costs and unemployment, and the dramatic impact thatCOVID-19 epidemic will leave in its labor market. This noteanalyzes the design, relevance and potential impacts of theCVA, as it was introduced in 2019, and recommendations forimprovements based on international experience. Inparticular, as government will consider a revised version tospeed up recovery of the labor market following COVID-19epidemic, these recommendations will be useful in thedrafting of an improved proposal.