O custo salarial da duração do desemprego para o trabalhador [Salary cost of the length of unemployment for workers]

This paper analyzes the influence of unemployment on occupational reinsertion, specifically on the wage earned by the workers who transitioned from unemployment to being employed. Using sample data from Monthly Employment Survey (PME, 2000), from Brazil, and quantile regression techniques, this stud...

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Published inNova economia (Belo Horizonte, Brazil) Vol. 19; no. 3; pp. 443 - 470
Main Authors de Araújo Júnior, Ignácio Tavares, de Lima Pereira, Márcia, Monte, Paulo Aguiar
Format Journal Article
LanguageEnglish
Published Economics Department, Universidade Federal de Minas Gerais (Brazil) 01.12.2009
Universidade Federal de Minas Gerais
SeriesNova Economia
Subjects
occupational reinsertion
reservation wage
unemployment
wage
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Summary:This paper analyzes the influence of unemployment on occupational reinsertion, specifically on the wage earned by the workers who transitioned from unemployment to being employed. Using sample data from Monthly Employment Survey (PME, 2000), from Brazil, and quantile regression techniques, this study provides evidence about the relationship between duration of unemployment and wage loss. The results show a heterogeneous chance to remain unemployed, in favor, mainly, of less qualified workers, and, in addition, wage losses are observed when the employed find a new job (occupational reinsertion). Moreover, in general, workers who have more qualification are more penalized, regardless of the quantile conditional wage distribution they are in, indicating a greater loss for employees in jobs that require higher qualification.
ISSN:0103-6351
0103-6351
DOI:10.1590/S0103-63512009000300003