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The Relationship Between Unemployment and Education: The Inverted U-Shaped Hypothesis for the Brazilian Labour Market


  • Alexandre Rands

    () (Datamétrica Consultoria, Pesquisa e Telemarketing)


This paper investigates the relationship between unemployment rate and educational attainment. While in the US, the literature finds a negative relationship, in Brazil a inverted ushaped relation has emerged from empirical investigations. A theoretical framework which encompasses both possible relations is forwarded and the possible differences among the patterns within developed and under developed countries is explained. A more rigorous test of the u-shaped hypothesis than those found in the literature is made through logit estimations with data from PNAD. Such test supports this hypothesis.

Suggested Citation

  • Alexandre Rands, 2002. "The Relationship Between Unemployment and Education: The Inverted U-Shaped Hypothesis for the Brazilian Labour Market," Working Papers 35, Datamétrica Consultoria Econômica, revised 2002.
  • Handle: RePEc:dtm:wpaper:35

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    More about this item


    Unemployment; education and unemployment; labour turnover.;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure


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