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Income Distribution and Duration of Poverty-Level Employment

In: Individual Behaviors and Technologies for Financial Innovations

Author

Listed:
  • Danilo Braun Santos

    (Federal University of Sao Paulo (UNIFESP))

  • Alexandre Ribeiro Leichsenring

    (University of São Paulo (USP))

  • Naercio Aquino Menezes Filho

    (University of São Paulo (USP) and Insper)

  • Wesley Mendes-Da-Silva

    (Sao Paulo School of Business Administration (FGV/EAESP)
    University of Texas at Austin)

Abstract

In this chapter we use microdata to examine employment duration for families receiving benefits from a distribution income. To achieve this goal, Cox proportional hazard models were used to estimate the job duration for program beneficiaries and non-beneficiaries, using a database of more than three million people. Our findings suggest that the risk of leaving work among beneficiaries of this program is 7–10% lower than the risk for non-beneficiaries. Parametric models were also adjusted to verify robustness, producing results equivalent to those of the Cox model. In all cases, program participation was observed through a covariate that varies over time, extracted directly from the program’s payment records. These results are relevant for the definition of public policies regarding the risk of the income level of poor families, as well as for the financial industry, as it offers relevant empirical evidence for the design of new financial products.

Suggested Citation

  • Danilo Braun Santos & Alexandre Ribeiro Leichsenring & Naercio Aquino Menezes Filho & Wesley Mendes-Da-Silva, 2019. "Income Distribution and Duration of Poverty-Level Employment," Springer Books, in: Wesley Mendes-Da-Silva (ed.), Individual Behaviors and Technologies for Financial Innovations, chapter 0, pages 117-141, Springer.
  • Handle: RePEc:spr:sprchp:978-3-319-91911-9_6
    DOI: 10.1007/978-3-319-91911-9_6
    as

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