IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v59y2016i4d10.1007_s41027-017-0086-z.html
   My bibliography  Save this article

Wage cost of incidence and duration of unemployment in Brazil

Author

Listed:
  • Paulo Aguiar Monte

    (Federal University of Paraíba)

Abstract

This paper analysed the impact of incidence of unemployment by means of a comparative study of income for two groups of workers: group 1, composed of permanent workers, group 2, composed of newly employed workers. Using micro-data from Pesquisa Mensal de Emprego, from 2006 to 2014, and different methodological techniques [Ordinary Least Squares (OSL), Quantile Regressions and the methods of Chernozhukov et al. (Econometrica 81(6): 2205–2268, 2013) and Firpo et al. (Econometrica 77(3): 953–973, 2009)] it was noted that (1) workers who recently moved from unemployed to employed (newly employed workers) earn an average wage inferior to those who stayed on the job (permanent workers) regardless of the position they occupy in wage distribution (2) Wage differential is higher for higher quantiles of wage distribution (reaching 32.7% in quantile 0.9 in 2008); (3) A reduction of differential was noted in the past few years, especially for superior quantiles in the distribution (quantile 0.9 differential income in 2014 was 21.9%). Concluding, the estimates confirm that turnover leads to wages cost for workers in terms of wage loss.

Suggested Citation

  • Paulo Aguiar Monte, 2016. "Wage cost of incidence and duration of unemployment in Brazil," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(4), pages 511-528, December.
    • Handle: RePEc:spr:ijlaec:v:59:y:2016:i:4:d:10.1007_s41027-017-0086-z
    DOI: 10.1007/s41027-017-0086-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-017-0086-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41027-017-0086-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Per-Anders Edin & Magnus Gustavsson, 2008. "Time Out of Work and Skill Depreciation," ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
    2. Addison, John T & Portugal, Pedro, 1989. "Job Displacement, Relative Wage Changes, and Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 281-302, July.
    3. den Haan, Wouter J. & Haefke, Christian & Ramey, Garey, 2001. "Shocks and Institutions in a Job Matching Model," University of California at San Diego, Economics Working Paper Series qt7x3544bn, Department of Economics, UC San Diego.
    4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    5. Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 437-459.
    6. Gregory, Mary & Jukes, Robert, 2001. "Unemployment and Subsequent Earnings: Estimating Scarring among British Men 1984-94," Economic Journal, Royal Economic Society, vol. 111(475), pages 607-625, November.
    7. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
    8. Marta Rahona-López & Inés P. Murillo-Huertas & Maria del Mar Salinas-Jiménez, 2016. "Wage differentials by sector and gender: a quantile analysis for the Spanish case," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(1), pages 20-38, March.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    10. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    11. Malathy Duraisamy & P. Duraisamy, 2016. "Gender wage gap across the wage distribution in different segments of the Indian labour market, 1983–2012: exploring the glass ceiling or sticky floor phenomenon," Applied Economics, Taylor & Francis Journals, vol. 48(43), pages 4098-4111, September.
    12. Abraham, Katharine G & Farber, Henry S, 1987. "Job Duration, Seniority, and Earnings," American Economic Review, American Economic Association, vol. 77(3), pages 278-297, June.
    13. repec:eee:labchp:v:3:y:1999:i:pb:p:2439-2483 is not listed on IDEAS
    14. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483, Elsevier.
    15. Knight, John & Li, Shi, 2006. "Unemployment duration and earnings of re-employed workers in urban China," China Economic Review, Elsevier, vol. 17(2), pages 103-119.
    16. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1371-1391.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goodwin, John & Routledge, James, 2021. "Determinants of the duration of the voluntary administration process: An unconditional quantile regression analysis," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    2. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
    3. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies.
    4. Kenneth Burdett & Carlos Carrillo-Tudela & Melvyn Coles, 2020. "The Cost of Job Loss," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(4), pages 1757-1798.
    5. Carneiro, Anabela & Portugal, Pedro, 2006. "Earnings Losses of Displaced Workers: Evidence from a Matched Employer-Employee Data Set," IZA Discussion Papers 2289, Institute of Labor Economics (IZA).
    6. Matti Keloharju & Samuli Knüpfer & Joacim Tåg, 2022. "What prevents women from reaching the top?," Financial Management, Financial Management Association International, vol. 51(3), pages 711-738, September.
    7. Dyah S. Pritadrajati & Anggita C. M. Kusuma & Sweta C. Saxena, 2020. "A Non-Healing Wound: Lasting Consequences Of Unemployment And Informal Self-Employment: An Empirical Evidence From Indonesia," Working Papers WP/09/2020, Bank Indonesia.
    8. Martin Biewen & Bernd Fitzenberger & Jakob de Lazzer, 2018. "The role of employment interruptions and part-time work for the rise in wage inequality," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-34, December.
    9. Daniel H. Cooper, 2014. "The effect of unemployment duration on future earnings and other outcomes," Working Papers 13-8, Federal Reserve Bank of Boston.
    10. Ignacio Tavares ARAUJO JR & Paulo AGUIAR DO MONTE, 2010. "The Wage Cost of Unemployment Duration: Evidences for the Brazilian Economy," EcoMod2010 259600010, EcoMod.
    11. Yonca Ertimur & Caleb Rawson & Jonathan L. Rogers & Sarah L. C. Zechman, 2018. "Bridging the Gap: Evidence from Externally Hired CEOs," Journal of Accounting Research, Wiley Blackwell, vol. 56(2), pages 521-579, May.
    12. José M. Arranz & Carlos García‐Serrano & María A. Davia, 2010. "Worker Turnover And Wages In Europe: The Influence Of Unemployment And Inactivity," Manchester School, University of Manchester, vol. 78(6), pages 678-701, December.
    13. Pritadrajati, Dyah S. & Kusuma, Anggita C.M. & Saxena, Sweta C., 2021. "Scarred for life: Lasting consequences of unemployment and informal self-employment," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 206-219.
    14. Yamaguchi, Shintaro, 2010. "The effect of match quality and specific experience on career decisions and wage growth," Labour Economics, Elsevier, vol. 17(2), pages 407-423, April.
    15. Biewen, Martin & Fitzenberger, Bernd & de Lazzer, Jakob, 2017. "Rising Wage Inequality in Germany: Increasing Heterogeneity and Changing Selection into Full-Time Work," IZA Discussion Papers 11072, Institute of Labor Economics (IZA).
    16. Giovanni Sulis, 2014. "Wage Returns to Experience and Tenure for Young Men in Italy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(5), pages 559-588, November.
    17. Bart Cockx & Matteo Picchio, 2013. "Scarring effects of remaining unemployed for long-term unemployed school-leavers," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 951-980, October.
    18. Hansen, Henrik & Rand, John & Win, Ngu Wah, 2022. "The gender wage gap in Myanmar: Adding insult to injury?," Journal of Asian Economics, Elsevier, vol. 81(C).
    19. Dickens William T. & Triest Robert K., 2012. "Potential Effects of the Great Recession on the U.S. Labor Market," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(3), pages 1-41, October.
    20. Shiba Shankar Pattayat & Jajati Keshari Parida & Kirtti Ranjan Paltasingh, 2023. "Gender Wage Gap among Rural Non-farm Sector Employees in India: Evidence from Nationally Representative Survey," Review of Development and Change, , vol. 28(1), pages 22-44, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijlaec:v:59:y:2016:i:4:d:10.1007_s41027-017-0086-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.