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Unintended consequences of unemployment insurance legislation: evidence from Brazi

Author

Listed:
  • Cristiano Costa Carvalho
  • Renata Narita

Abstract

The aim of this study is to investigate whether the probability of Brazilian formal workers being laid-off increases when they are elegible to receive the unemployment insurance. Using the Brazilian Monthly Employment Survey for the largest metropolitan regions, we estimate the e↵ect of a change in the law on the probability of lay-o↵ for the workers eligible to the benefit. The results point out to a 6,8% rise in this probability in comparison to the non-eligible workers.

Suggested Citation

  • Cristiano Costa Carvalho & Renata Narita, 2016. "Unintended consequences of unemployment insurance legislation: evidence from Brazi," Working Papers, Department of Economics 2016_34, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2016wpecon34
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Carvalho_Narita_34WP.pdf
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    Cited by:

    1. Christopher O'Leary & Tulio Cravo & Ana Cristina Sierra & Leandro Justino, 2022. "Effects of Job Referrals on Labor Market Outcomes in Brazil," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 157-186, June.

    More about this item

    Keywords

    unemployment insurance; unemployment; informality; labor legislation.;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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