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Labor market regulations and the demand for labor in Brazil

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Author Info
Ricardo Paes de Barros (IPEA)
Carlos Henrique Corseuil (IPEA)
Gustavo Gonzaga () (Department of Economics PUC-Rio)

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Abstract

The main objective of this study is to evaluate the impact of the 1988 changes in labor market regulations prescribed by the new Constitution on the level of employment and on the speed of employment adjustment in Brazil. From the many aspects of labor market regulations, this study concentrates on those that directly influence variable labor and dismissal costs. Evaluating the impact of changes in these costs on the level of employment and speed of adjustment is based on estimates of structural dynamic models for labor demand at different points in time before and after the 1988 constitutional change. The empirical strategy is to estimate such models from micro-longitudinal monthly data for a sample of 5,000 manufacturing establishments, which cover the period from January 1985 to December 1997. To try to isolate the effect of the constitutional change on the parameters of the labor demand function from the effects of the trade liberalization process and from the several stabilization plans that also occurred by the end of the 1980s, we regress our monthly estimates of these parameters on a temporal indicator of the 1988 constitutional change, controlling for a variety of other macroeconomic indicators.

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Publisher Info
Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 398.

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Length: 23 pages
Date of creation: Mar 1999
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Handle: RePEc:rio:texdis:398

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

References listed on IDEAS
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  1. Burgess, Simon M, 1992. "Asymmetric Employment Cycles in Britain: Evidence and an Explanation," Economic Journal, Royal Economic Society, vol. 102(411), pages 279-90, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carlos Arango & Angela Milena Rojas, 2003. "Demanda Laboral Y Reforma Comercial En El Sector Manufacturero Colombiano: 1977 - 1999," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE. [Downloadable!]
  2. Adriana Marshall, 2004. "Labour market policies and regulations in Argentina, Brazil and Mexico: Programmes and impacts," Employment strategy papers 2004-13, International Labour Office. [Downloadable!]
  3. Fajnzylber, Pablo & Maloney, William F., 2001. "How comparable are labor demand elasticities across countries?," Policy Research Working Paper Series 2658, The World Bank. [Downloadable!]
  4. Gustavo Gonzaga, 2003. "Labor Turnover and Labor Legislation in Brazil," Textos para discussão 475, Department of Economics PUC-Rio (Brazil). [Downloadable!]
  5. Ricardo Paes de Barros & Carlos Henrique Corseuil, 2001. "The Impact of Regulations on Brazilian Labor Market Performance," RES Working Papers 3124, Inter-American Development Bank, Research Department. [Downloadable!]
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  6. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand andtrade reform in Latin America," Policy Research Working Paper Series 2491, The World Bank. [Downloadable!]
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  7. Carlos Arango Arango & Angela Milena Rojas, . "Demanda Laboral en el Sector Manufacturero COlombiano: 1977-1999," Borradores de Economia 247, Banco de la Republica de Colombia. [Downloadable!]
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