Is It Possible to Extend the Working Lives of Brazilians? An Analysis of Inequalities in Work Capacity by Educational Level

Alexandre Ribeiro, Universidade Federal de Minas Gerais (UFMG)
Andreea Beatrice Rusu, Cedeplar
Bernardo L. Queiroz, centro de desenvolvimento e planejamento regional

Brazil is currently facing rapid population aging, which is posing significant challenges to the sustainability of its national public pension program. Despite the increase in life expectancy, the elderly population's participation in the labor market remains limited. The Pension Reform aimed to address this by aligning retirement ages with life expectancy, but it failed to take into account the differences in health and physical job requirements based on educational levels, potentially impacting individuals' work capacity. This investigation examines whether disparities in educational attainment impact the likelihood of Brazilians approaching retirement age to prolong their career, considering their work capacity. Brazilian Longitudinal Study of Aging (ELSI) were analyzed using logistic regression to examine variations in work capacity based on educational level among individuals affiliated with the General Social Security System (RGPS). Individuals with lower levels of education are less likely to possess the requisite work capacity as they near retirement age.This deficiency in work capacity is likely to create significant difficulties for those with lower educational attainment in meeting the new retirement age requirements imposed by Pension Reform.

Keywords: Human Capital, Education, and Work, Economic Demography, Population Ageing, Population Policies

See paper.