For many households in Brazil, a significant share of the income is provided by retirement or pension. We argue in this paper that the high level of income provided by retirement and pension in Brazil could have consequences on young persons` decision about whether to work, and also on their decision about schooling attainment. The empirical evidence suggests that household income from retirement and pension reduces the labor force participation rate of young workers. Also, according to the results, this reduction in the participation rate is associated with both higher proportions of young individuals studying and higher proportions of individuals neither studying nor participating.
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Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number
1262.