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


  • Paulo Aguiar do Monte


  • Ignácio Tavares de Araújo Júnior


  • Márcia de Lima Pereira



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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    References listed on IDEAS

    1. Obstfeld, Maurice, 1986. "Rational and Self-fulfilling Balance-of-Payments Crises," American Economic Review, American Economic Association, vol. 76(1), pages 72-81, March.
    2. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    3. Krugman, Paul, 1979. "A Model of Balance-of-Payments Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 311-325, August.
    4. Gabriel Palma, 2000. "The Magical Realism of Brazilian Economics: How to Create a Financial Crisis by Trying to Avoid One," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2000-16, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    5. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    6. Flood, Robert P. & Garber, Peter M., 1984. "Collapsing exchange-rate regimes : Some linear examples," Journal of International Economics, Elsevier, vol. 17(1-2), pages 1-13, August.
    7. Maurice Obstfeld, 1994. "The Logic of Currency Crises," NBER Working Papers 4640, National Bureau of Economic Research, Inc.
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    More about this item


    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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