IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/533-en.html
   My bibliography  Save this paper

Improving Labour Utilisation in Brazil

Author

Listed:
  • Luiz de Mello
  • Naércio Menezes Filho
  • Luiz G. Scorzafave

Abstract

Labour force participation is comparable to the OECD area for prime-age males. It is somewhat lower for females and is trending down for youths as a result of rising school enrolment. The labour market is placing an increasing premium on skills, making it particularly difficult for the less educated to find a job. Labour informality is pervasive and turnover high, especially for the less educated, discouraging investment in labour training and the acquisition of job-related skills, and perpetuating income disparities. The main policy challenge is to improve labour utilisation by reducing informality and fostering human capital accumulation on and off the job. A stable macroeconomy is a pre-condition for reducing unemployment, but a greater focus on activation within the current policy framework would be advisable. To close the remaining gender gap, female labour force participation in full-time jobs could be encouraged by increasing the supply of affordable child care and pre-school education. Labour turnover can be reduced by mitigating the incentives for negotiated separation, which currently arise from the design of severance insurance (FGTS) in the event of unfair dismissal. Skill marketability can be enhanced through the introduction of a national skills certification system, and labour training can become more cost-effective through increased contestability in existing programmes. Accroître l'utilisation de la main-d'oeuvre au Brésil Le taux d'activité est comparable à celui de la zone OCDE pour les hommes d'âge moyen, mais il est un peu plus bas pour les femmes et a tendance à baisser pour les jeunes, parallèlement aux progrès de la scolarisation. Le marché du travail est de plus en plus favorable aux travailleurs qualifiés et il est donc devenu particulièrement difficile pour ceux qui ne le sont pas de trouver un emploi. Le travail non déclaré est très répandu et les taux de rotation élevés qui le caractérisent, surtout pour les travailleurs peu qualifiés, découragent l'investissement dans la formation de la main-d'oeuvre et l'acquisition de qualifications liées à l'emploi. Pour les pouvoirs publics, le principal défi à relever est donc d'accroître l'utilisation de la main-d'oeuvre en luttant contre le travail non déclaré et en favorisant l'accumulation de capital humain dans l'emploi et hors emploi. Un environnement macroéconomique stable est un préalable indispensable pour faire reculer le chômage, mais le développement des mesures d?activation dans le cadre actuel de l'action gouvernementale paraît également souhaitable. Pour achever de combler l'écart d'activité entre les sexes, on pourrait encourager les femmes à travailler à temps plein en développant l'offre de services d'accueil et d'éducation préscolaire d'un coût abordable pour les enfants, tandis que pour atténuer la rotation de la main-d'oeuvre, il faudrait agir sur les incitations au départ négocié qui découlent actuellement du régime d'assurance contre la perte d'emploi (FGTS) en cas de licenciement abusif. Enfin, on valoriserait davantage les qualifications sur le marché grâce à la mise en place d'un système national de certification et on rendrait la formation professionnelle plus efficace et plus économique en introduisant davantage de concurrence dans les programmes existants.

Suggested Citation

  • Luiz de Mello & Naércio Menezes Filho & Luiz G. Scorzafave, 2006. "Improving Labour Utilisation in Brazil," OECD Economics Department Working Papers 533, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:533-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/353720822276
    Download Restriction: no

    References listed on IDEAS

    as
    1. Antonio Moreno, 2003. "Reaching Inflation Stability," Faculty Working Papers 13/03, School of Economics and Business Administration, University of Navarra.
    2. Nathalie Girouard & Christophe André, 2005. "Measuring Cyclically-adjusted Budget Balances for OECD Countries," OECD Economics Department Working Papers 434, OECD Publishing.
    3. Kim, Suk Joong & Moshirian, Fariborz & Wu, Eliza, 2005. "Dynamic stock market integration driven by the European Monetary Union: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 29(10), pages 2475-2502, October.
    4. Minella, Andre & de Freitas, Paulo Springer & Goldfajn, Ilan & Muinhos, Marcelo Kfoury, 2003. "Inflation targeting in Brazil: constructing credibility under exchange rate volatility," Journal of International Money and Finance, Elsevier, vol. 22(7), pages 1015-1040, December.
    5. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
    6. Sébastien Laurent & Luc Bauwens & Jeroen V. K. Rombouts, 2006. "Multivariate GARCH models: a survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 79-109.
    7. Luiz de Mello & Diego Moccero, 2006. "Brazil's Fiscal Stance during 1995-2005: The Effect of Indebtedness on Fiscal Policy Over the Business Cycle," OECD Economics Department Working Papers 485, OECD Publishing.
    8. Klaus Schmidt-Hebbel & Alejandro M. Werner, 2002. "Inflation Targeting in Brazil, Chile, and Mexico: Performance, Credibility, and the Exchange Rate," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 31-90, January.
    9. Lane, Philip R., 2003. "The cyclical behaviour of fiscal policy: evidence from the OECD," Journal of Public Economics, Elsevier, vol. 87(12), pages 2661-2675, December.
    10. Reisen, Helmut & von Maltzan, Julia, 1999. "Boom and Bust and Sovereign Ratings," International Finance, Wiley Blackwell, vol. 2(2), pages 273-293, July.
    11. Alex Luiz Ferreira, 2010. "The determinants of default risk in Brazil," Applied Economics Letters, Taylor & Francis Journals, vol. 17(17), pages 1703-1708.
    12. Luiz De Mello & Diego Moccero, 2009. "Monetary Policy and Inflation Expectations in Latin America: Long-Run Effects and Volatility Spillovers," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(8), pages 1671-1690, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sparreboom, Theo. & de Gier, Michael P.F., 2008. "Assessing vulnerable employment : the role of status and sector indicators in Pakistan, Namibia and Brazil," ILO Working Papers 994240153402676, International Labour Organization.
    2. repec:ilo:ilowps:424015 is not listed on IDEAS
    3. Theo Sparreboom & Lubna Shahnaz, 2007. "Assessing Labour Market Vulnerability among Young People," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(3), pages 193-213.
    4. repec:hpe:journl:y:2016:v:219:i:4:p:93-120 is not listed on IDEAS

    More about this item

    Keywords

    employability; employabilité; informality; informalité; labour markets; marché du travail; probit; probit;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J8 - Labor and Demographic Economics - - Labor Standards

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:533-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/edoecfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.