Regional Differences in Labor Income and Consumption Profiles and Support Ratios: An Analysis in Brazilian States

Anderson Fernandes , Centro Federal de Educação Tecnológica de Minas Gerais

Population aging is a fundamental source of socioeconomic changes. The changing age structure poses some challenges in the economic circumstances of countries by the potential increase in the levels of dependency. This paper aims to describe the regional differences in Brazilian labor income and consumption age profiles and to assess its consequences, along with population changes, on economic support ratios. Data from the 2017 Household Budget Survey (POF) and IBGE population projection by state were used. These data were used to estimate the age profiles of consumption and labor income. I calculated state economic support ratios (ESRs) for 2017 and used the population projection to project ESRs. Results show that each Brazilian state has a specific behavior in terms of labor income and consumption and there is a gradient in support ratios.

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 Presented in Session 98. Flash session 2 Economics, Human Capital and Labour Markets