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Amendment 110/2001 and the Dynamics of Brazilian Labour Market

Author

Listed:
  • Allyne de Almeida Ferreira Ramos

    (Federal University of Paraiba)

  • Paulo Aguiar do Monte

    (Federal University of Paraiba)

Abstract

This article aimed at evaluating whether the increase in termination fines for the Brazilian Government Severance Indemnity Fund for Employees (Fundo de Garantia do Tempo de Serviço–FGTS) (amendment No. 110/2001) from 40 per cent to 50 per cent, concerning employees dismissed without just cause, has affected the dynamics of dismissals in the Brazilian formal labour market. Data from the Social Information Annual List (Relação Anual de Informações Sociais–RAIS) 2001–2002, descriptive and econometric analyses using fixed effects panel data and quantile regressions for panel data suggested that passing the amendment 110/2001 helped reducing dismissals without just cause. This may also have contributed to reduce possible “agreements” or “collusion” between the employee and the employer to the employees gets the benefits that he/she is entitled to when get fired without justification.

Suggested Citation

  • Allyne de Almeida Ferreira Ramos & Paulo Aguiar do Monte, 2021. "Amendment 110/2001 and the Dynamics of Brazilian Labour Market," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 351-370, June.
    • Handle: RePEc:spr:ijlaec:v:64:y:2021:i:2:d:10.1007_s41027-021-00315-z
    DOI: 10.1007/s41027-021-00315-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Employees; Turnover; Government; Legislation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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