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Unemployment insurance, job mobility and formalization: an analysis of the Brazilian case

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  • Danilo P. Souza

Abstract

In order to assess the recent rise in the fiscal expenses due to unemployment insurance (UI) in Brazil, we build a simple matching model that takes into account the growing formalization rate, job mobility and other institutional characteristics of the country’s labor market. Our results indicate that around 77% of the positive variation in the UI expenses is due to an increase in the formalization rate, while 22% is due to a rise in the job mobility between 2000-2014.

Suggested Citation

  • Danilo P. Souza, 2017. "Unemployment insurance, job mobility and formalization: an analysis of the Brazilian case," Working Papers, Department of Economics 2017_24, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2017wpecon24
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    References listed on IDEAS

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    1. James Albrecht & Lucas Navarro & Susan Vroman, 2009. "The Effects of Labour Market Policies in an Economy with an Informal Sector," Economic Journal, Royal Economic Society, vol. 119(539), pages 1105-1129, July.
    2. Marcelo Abi-Ramia Caetano & André Gambier Campos & José Valente Chaves & Carlos Henrique Corseuil & Leon Faceira Tomelin, 2015. "Os Reflexos das Medidas Provisórias 664 e 665 Sobre as Pensões, o Abono Salarial e o Seguro-Desemprego em suas Modalidades Defeso e Formal," Discussion Papers 2067, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Gabriel Ulyssea, 2005. "Instituições e a Informalidade no Mercado de Trabalho," Discussion Papers 1096, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    5. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
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    More about this item

    Keywords

    labor market; job mobility; informality; unemployment insurance;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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