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Can work sharing sustain employment during economic downturn? Evidence from Brazil

Author

Listed:
  • Cravo, Tulio A.
  • de Andrade Jacinto, Paulo
  • Quintana, Rodrigo

Abstract

This paper assesses the impact of the Employment Protection Programme (EPP) on employment outcomes in Brazil. The EPP was a work-sharing programme with a reduced work schedule that featured wage subsidies. It was created to preserve jobs during a recession that started in 2014. Using administrative data of the programme, the results of this study show that establishments that participate in the programme present higher employment levels than non-participant establishments during and after the programme. Furthermore, the effect of the EPP on employment increases over time. These findings suggest that the programme was an effective tool to sustain employment levels.

Suggested Citation

  • Cravo, Tulio A. & de Andrade Jacinto, Paulo & Quintana, Rodrigo, 2024. "Can work sharing sustain employment during economic downturn? Evidence from Brazil," Labour Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:labeco:v:90:y:2024:i:c:s0927537124000794
    DOI: 10.1016/j.labeco.2024.102584
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    More about this item

    Keywords

    Employment; Work-sharing policies; Short-time work; Wage subsidies;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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