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During the 90?s the unemployment rate and the household retirement income percapita rose sharply in Brazil. It happened in a more intense way for the unskilledworkers than for the other groups. According to the argument of this paper, theincrease in household retirement income could have affected workers reservationwage, augmenting their wage pressure. In this way, wage pressure changes could haveimplied in higher unemployment and long-term unemployment rates. The empiricalevidence, using the Brazilian Natioanl Household Sample Survey [Pesquisa Nacionalpor Amostra de Domicílios (PNAD)] data from 1981 to 1999, shows that thehousehold retirement income has a positive effect on the unemployment rate and onthe long-term unemployment rate for unskilled workers.
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