Preserve the distributive primacy of the labor market and that treat poverty and social exclusion as Country Email List residual issues. On the contrary, poverty and marginality are Country Email List not derived from circumstantial income Country Email Listlosses due to cyclical crises or productive reconversions, but rather structural problems resulting from the way in which both the labor market and Country Email List social protection institutions work. Contributory social security systems: exclusion, stratification and sustainability.
Labor markets segmented by productivity, size and regulatory capacity Country Email List of the State limit the levels Country Email Listof coverage of social security and exclude the most vulnerable groups of the population. Thus, contributory social security systems in the Country Email List region show three characteristic features: coverage deficit, marked stratification, and deficits in demographic and fiscal sustainability. In practice, social insurance is stratified by income levels and job stability; Thus, those who most require social insurance are Country Email List those who have the least access, and when they do, they do so in more precarious conditions.
For example, retirement and contributory pension replacement rates tend to favor high-income groups and public employees, while they are very low for self-employed, rural or domestic workers. In addition, large groups of the population do not have coverage for pensions or unemployment, leaves or illnesses. Although they cover only part of the Country Email List population, contributory social insurance requires subsidies from general income due to its low support rates and growing financial deficits. In this context, subsidies deepen regressive inequality. For example, it is common to observe that a large part of the general income that finances social security comes from regressive taxes such as VAT , when a large part of the poorest population Country Email List does not have coverage. In addition, the contributions to social security are rarely progressive. The foregoing favors the defense Country Email List of a universal basic income financed from general revenues.