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O custo salarial da duração do desemprego para o trabalhador [Salary cost of the length of unemployment for workers]

Author

Listed:
  • Paulo Aguiar do Monte

    (UFPB)

  • Ignácio Tavares de Araújo Júnior

    (UFPB)

  • Márcia de Lima Pereira

    (UFCG)

Abstract

This paper analyzes the influence of unemployment on occupational reinsertion, specifically on the wage earned by the workers who transitioned from unemployment to being employed. Using sample data from Monthly Employment Survey (PME, 2000), from Brazil, and quantile regression techniques, this study provides evidence about the relationship between duration of unemployment and wage loss. The results show a heterogeneous chance to remain unemployed, in favor, mainly, of less qualified workers, and, in addition, wage losses are observed when the employed find a new job (occupational reinsertion). Moreover, in general, workers who have more qualification are more penalized, regardless of the quantile conditional wage distribution they are in, indicating a greater loss for employees in jobs that require higher qualification.

Suggested Citation

  • Paulo Aguiar do Monte & Ignácio Tavares de Araújo Júnior & Márcia de Lima Pereira, 2009. "O custo salarial da duração do desemprego para o trabalhador [Salary cost of the length of unemployment for workers]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 19(3), pages 443-470, October-D.
  • Handle: RePEc:nov:artigo:v:19:y:2009:i:3:p:443-470
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    More about this item

    Keywords

    unemployment; occupational reinsertion; wage; reservation wage;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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