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Labor market regulations and the demand for labor in Brazil

Author

Listed:
  • Ricardo Paes de Barros

    (IPEA)

  • Carlos Henrique Corseuil

    (IPEA)

  • Gustavo Gonzaga

    () (Department of Economics PUC-Rio)

Abstract

The main objective of this study is to evaluate the impact of the 1988 changes in labor market regulations prescribed by the new Constitution on the level of employment and on the speed of employment adjustment in Brazil. From the many aspects of labor market regulations, this study concentrates on those that directly influence variable labor and dismissal costs. Evaluating the impact of changes in these costs on the level of employment and speed of adjustment is based on estimates of structural dynamic models for labor demand at different points in time before and after the 1988 constitutional change. The empirical strategy is to estimate such models from micro-longitudinal monthly data for a sample of 5,000 manufacturing establishments, which cover the period from January 1985 to December 1997. To try to isolate the effect of the constitutional change on the parameters of the labor demand function from the effects of the trade liberalization process and from the several stabilization plans that also occurred by the end of the 1980s, we regress our monthly estimates of these parameters on a temporal indicator of the 1988 constitutional change, controlling for a variety of other macroeconomic indicators.

Suggested Citation

  • Ricardo Paes de Barros & Carlos Henrique Corseuil & Gustavo Gonzaga, 1999. "Labor market regulations and the demand for labor in Brazil," Textos para discussão 398, Department of Economics PUC-Rio (Brazil).
  • Handle: RePEc:rio:texdis:398
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    File URL: http://www.econ.puc-rio.br/pdf/td398.pdf
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    References listed on IDEAS

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    1. Macedo, Roberto, 1985. "Diferenciais de salários entre empresas privadas e estatais no Brasil," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 39(4), October.
    2. Burgess, Simon M, 1992. "Asymmetric Employment Cycles in Britain: Evidence and an Explanation," Economic Journal, Royal Economic Society, vol. 102(411), pages 279-290, March.
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    Citations

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    Cited by:

    1. Beatriz Muriel & Carlos Gustavo Machicado, 2012. "Employment and Labor Regulation: Evidence from Manufacturing Firms in Bolivia, 1988-2007," Development Research Working Paper Series 07/2012, Institute for Advanced Development Studies.
    2. Fajnzylber, Pablo & Maloney, William F., 2005. "Labor demand and trade reform in Latin America," Journal of International Economics, Elsevier, vol. 66(2), pages 423-446, July.
    3. Carlos Arango & Angela Milena Rojas, 2003. "Demanda Laboral Y Reforma Comercial En El Sector Manufacturero Colombiano: 1977 - 1999," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, December.
    4. Gustavo Gonzaga, 2003. "Labor Turnover and Labor Legislation in Brazil," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2003), pages 165-222, August.
    5. Ricardo Paes de Barros & Carlos Henrique Corseuil, 2004. "The Impact of Regulations on Brazilian Labor Market Performance," NBER Chapters,in: Law and Employment: Lessons from Latin America and the Caribbean, pages 273-350 National Bureau of Economic Research, Inc.
    6. repec:bdr:ensayo:v::y:2003:i:44:p:96-154 is not listed on IDEAS
    7. Rita Almeida & Pedro Carneiro, Renata Narita, 2013. "Producing Higher Quality Jobs: Enforcement of Mandated Benefits across Brazilian Cities between 1996-2007," Working Papers, Department of Economics 2013_22, University of São Paulo (FEA-USP).
    8. Tito Nícias Teixeira da Silva Filho, 2008. "Buscando la tasa natural de desempleo en una economía expuesta a grandes choques de precios relativos: el caso de Brasil," Investigación Conjunta-Joint Research,in: Centro de Estudios Monetarios Latinoamericanos (CEMLA) (ed.), Estimación y Uso de Variables no Observables en la Región, edition 1, volume 1, chapter 14, pages 426-464 Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    9. Ricardo Paes de Barros & Carlos Henrique Corseuil, 2001. "The Impact of Regulations on Brazilian Labor Market Performance," IDB Publications (Working Papers) 3273, Inter-American Development Bank.

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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