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Improving Labour Utilisation in Brazil

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Author Info
Luiz de Mello
Naércio Menezes Filho
Luiz G. Scorzafave ()

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Abstract

Labour force participation is comparable to the OECD area for prime-age males. It is somewhat lower for females and is trending down for youths as a result of rising school enrolment. The labour market is placing an increasing premium on skills, making it particularly difficult for the less educated to find a job. Labour informality is pervasive and turnover high, especially for the less educated, discouraging investment in labour training and the acquisition of job-related skills, and perpetuating income disparities. The main policy challenge is to improve labour utilisation by reducing informality and fostering human capital accumulation on and off the job. A stable macroeconomy is a pre-condition for reducing unemployment, but a greater focus on activation within the current policy framework would be advisable. To close the remaining gender gap, female labour force participation in full-time jobs could be encouraged by increasing the supply of affordable child care and pre-school education. Labour turnover can be reduced by mitigating the incentives for negotiated separation, which currently arise from the design of severance insurance (FGTS) in the event of unfair dismissal. Skill marketability can be enhanced through the introduction of a national skills certification system, and labour training can become more cost-effective through increased contestability in existing programmes.

Accroître l'utilisation de la main-d'oeuvre au Brésil
Le taux d'activité est comparable à celui de la zone OCDE pour les hommes d'âge moyen, mais il est un peu plus bas pour les femmes et a tendance à baisser pour les jeunes, parallèlement aux progrès de la scolarisation. Le marché du travail est de plus en plus favorable aux travailleurs qualifiés et il est donc devenu particulièrement difficile pour ceux qui ne le sont pas de trouver un emploi. Le travail non déclaré est très répandu et les taux de rotation élevés qui le caractérisent, surtout pour les travailleurs peu qualifiés, découragent l'investissement dans la formation de la main-d'oeuvre et l'acquisition de qualifications liées à l'emploi. Pour les pouvoirs publics, le principal défi à relever est donc d'accroître l'utilisation de la main-d'oeuvre en luttant contre le travail non déclaré et en favorisant l'accumulation de capital humain dans l'emploi et hors emploi. Un environnement macroéconomique stable est un préalable indispensable pour faire reculer le chômage, mais le développement des mesures d?activation dans le cadre actuel de l'action gouvernementale paraît également souhaitable. Pour achever de combler l'écart d'activité entre les sexes, on pourrait encourager les femmes à travailler à temps plein en développant l'offre de services d'accueil et d'éducation préscolaire d'un coût abordable pour les enfants, tandis que pour atténuer la rotation de la main-d'oeuvre, il faudrait agir sur les incitations au départ négocié qui découlent actuellement du régime d'assurance contre la perte d'emploi (FGTS) en cas de licenciement abusif. Enfin, on valoriserait davantage les qualifications sur le marché grâce à la mise en place d'un système national de certification et on rendrait la formation professionnelle plus efficace et plus économique en introduisant davantage de concurrence dans les programmes existants.

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 533.

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Date of creation: 06 Dec 2006
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Handle: RePEc:oec:ecoaaa:533-en

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Related research
Keywords: labour markets marché du travail informality informalité employability employabilité probit probit

Find related papers by JEL classification:
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J8 - Labor and Demographic Economics - - Labor Standards

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