Roberto Santolin (Cedeplar-UFMG) Mariângela Furlan Antigo (Cedeplar-UFMG)
Abstract
This work estimates elasticity wage/long-term unemployment and checking which individuals groups are more affected by unemployment hysteresis phenomenon, using Household Sample National Survey (PNAD) published by the Brazilian Bureau of Geography and Statistics (IBGE) of six metropolitan regions - São Paulo, Rio de Janeiro, Recife, Salvador, Belo Horizonte e Porto Alegre – between 1997 and 2005. Behind of model of Dynamic Wage Curve, the results show strong wage flexibility in labor market. However, analyzing only formal workers, this result show that hysteresis originates of wage rigidity. In addition, it was observed that men, whites and individuals with higher education levels are less affected by long-term unemployment caused of wage flexibility these groups, among other reasons.
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Length: 25 pages Date of creation: Oct 2009 Date of revision: Handle: RePEc:cdp:texdis:td368
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