Labour market reforms in brazil (2017-2021): An analysis of the effects of recent flexibilization on labor market legislation

Author:

Oreiro José1,Gabriel Luciano2,D’Amato Stefan3,da Silva Kalinka4

Affiliation:

1. University of Brasília (UnBB), Economics Department, Brazil

2. Federal University of Juiz de Fora (UFJF), Economics Department, Brazil

3. Center for Development and Regional Planning, Federal University of Minas Gerais (CEDEPLAR/UFMG), Brazil

4. Federal Institute of Goiás (IFG), Campus Luziania, Brazil

Abstract

The main objective of this work is to analyze the effects of Brazilian Labor Market Reform (BLMR) in the short run and, based on identified changes in the economy in recent decades, to verify how these changes have affected the labor market. Four methods were used in a complementary way: (i) employment quality index; (ii) panel data estimation method; (iii) synthetic control method and (iv) microdata analysis. We observed that there was no considerable increase in the quality of employment and formal employment and the rate of unemployment did not decrease after the implementation of these changes. Part of this dynamic is cyclical and related to exogenous shocks, such as the COVID pandemic on the Brazilian economy. Finally, according to econometric analysis, the rate of unemployment in Brazil is more responsive to investment rates and the business environment than to unit labor cost and changes in labor legislation.

Publisher

National Library of Serbia

Subject

General Economics, Econometrics and Finance

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