Unemployment benefits and formality in the Brazilian labor market

Authors

  • Aline Nogueira Menezes Mourão University of Ottawa
  • Mariana Eugenio Almeida Observatório do Trabalho na Secretaria de Estado de Trabalho e Emprego de Minas Gerais
  • Ernesto Friedrich de Lima Amaral Departamento de Ciência Política (DCP) da Universidade Federal de Minas Gerais – UFMG

Keywords:

Unemployment benefits, Formal employment, Labor market, Evaluation of public policies, Brazil

Abstract

The authors analyze the relationship between unemployment benefits and formal employment in the Brazilian labor market. The central hypothesis is that the receipt of such benefits has a negative impact on levels of formal employment, after benefits have been received. The data were extracted from the Brazilian Household Surveys between 1999 and 2009. Logistic regression models were estimated in order to evaluate the effect of unemployment benefits on the Brazilian labor market. The dependent variable is the occurrence of formal employment for workers. In addition to a set of independent variables (survey year, region of residence, census area, gender, race, age and education), the models include a public policy evaluation variable (unemployment benefits), as well as variables to analyze the trend of this public policy over time. After having received unemployment benefits, the occurrence of formal employment among workers falls by 42%. The analysis of interactive terms indicates that increases in the real values of the benefits, applied since 1999, have not caused significant effects on the dependent variable.

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Published

2013-07-22

How to Cite

Mourão, A. N. M., Almeida, M. E., & Amaral, E. F. de L. (2013). Unemployment benefits and formality in the Brazilian labor market. Brazilian Journal of Population Studies, 30(1), 251–270. Retrieved from https://rebep.org.br/revista/article/view/24

Issue

Vol. 30 No. 1 (2013)

Section

Original Articles

License

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