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Who Suffers During Recessions in Brazil?

Author

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  • Cravo, Tulio
  • Schimanski, Caroline

Abstract

While the relationship between business cycles and employment is a topic of continuing interest, it has received limited attention in the literature focusing on developing countries. This study adds to the literature as it analyzes the heterogeneous correlations of business cycles with employment, unemployment and participation rate by different age, education, gender and ethnic groups in a developing country setting. Using data from the monthly PME employment surveys between 2002 and 2016 in Brazil, we assess how these labour market measures in specific demographic groups are affected by the business cycles. The results provide evidence of the existence of large heterogeneities among demographic groups. Interestingly, demographic groups’ labour market measures in levels are not necessarily aligned with their sensitivity to economic cycles when controlling for other demographic characteristics. Understanding how levels of labour market measures related to their sensitivity to cycles is crucial to design better policies.

Suggested Citation

  • Cravo, Tulio & Schimanski, Caroline, 2019. "Who Suffers During Recessions in Brazil?," IDB Publications (Working Papers) 9546, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:9546
    DOI: http://dx.doi.org/10.18235/0001640
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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