Feb 10 • 02:00 UTC 🇧🇷 Brazil Folha (PT)

Reduction of working hours will have redistributive effect, says Ipea study

A study by Ipea suggests that reducing work hours will significantly redistribute income in Brazil, impacting low-wage, low-education workers.

A forthcoming study from Ipea (Institute of Applied Economic Research) indicates that a potential reduction in the workweek could lead to substantial income redistribution in Brazil. This assertion is primarily based on the observation that the current 44-hour workweek, mandated by law, predominantly affects lower-income, less-educated workers. The study uses data from the Rais (Annual Social Information Report) for 2023 to support its claims.

The technical note from Ipea highlights that longer working hours are mainly found in low-paid, high-turnover jobs, while 40-hour contracts are generally linked to higher average salaries. This discrepancy points to an imbalance in the labor market, where those in more precarious positions are forced to work longer hours for lesser pay, thereby perpetuating cycles of economic inequality.

The discussion surrounding the reduction of working hours has recently gained momentum, particularly due to the ongoing debates regarding the end of the 6x1 work schedule. This change is one of the primary objectives set by President Lula's government for the current year, demonstrating a governmental push towards labor reforms that prioritize worker welfare and aim to rectify income disparities in Brazilian society.

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