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  • José Márcio Camargo
  • Maurício Cortez Reis

Abstract

During the 90?s the unemployment rate and the household retirement income percapita rose sharply in Brazil. It happened in a more intense way for the unskilledworkers than for the other groups. According to the argument of this paper, theincrease in household retirement income could have affected workers reservationwage, augmenting their wage pressure. In this way, wage pressure changes could haveimplied in higher unemployment and long-term unemployment rates. The empiricalevidence, using the Brazilian Natioanl Household Sample Survey [Pesquisa Nacionalpor Amostra de Domicílios (PNAD)] data from 1981 to 1999, shows that thehousehold retirement income has a positive effect on the unemployment rate and onthe long-term unemployment rate for unskilled workers.

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Bibliographic Info

Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1115.

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Length: 54 pages
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:ipe:ipetds:1115

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  1. Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
  2. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September.
  3. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  4. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
  5. Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March.
  6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, January.
  7. Stephen Machin & Alan Manning, 1998. "The Causes and Consequences of Long-Term Unemployment in Europe," CEP Discussion Papers dp0400, Centre for Economic Performance, LSE.
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Cited by:
  1. Pedro Rodrigues de OLIVEIRA & Ana Lúcia KASSOUF, 2012. "Impact Evaluation of the Brazilian Non-Contributory Pension Program Benefício de Prestação Continuada (BPC) on Family Welfare," Working Papers PIERI 2012-12, PEP-PIERI.

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