IDEAS home Printed from https://ideas.repec.org/p/rio/texdis/398.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://www.econ.puc-rio.br/uploads/adm/trabalhos/files/td398.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Macedo, Roberto, 1985. "Diferenciais de salários entre empresas privadas e estatais no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (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.
    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. 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. Carlos A. Arango & Ängela Milena Rojas, 2003. "Demanda Laboral en el Sector Manufacturero Colombiano:1977-1999," Borradores de Economia 2270, Banco de la Republica.
    3. 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.
    4. Carlos A. Arango & Ángela Milena Rojas, 2003. "Demanda laboral y reforma comercial en el sector manufacturero colombiano: 1977-1999," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, December.
    5. Gustavo Gonzaga, 2003. "Labor Turnover and Labor Legislation in Brazil," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2003), pages 165-222, August.
    6. 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.
    7. repec:bdr:ensayo:v::y:2003:i:44:p:96-154 is not listed on IDEAS
    8. 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).
    9. Koujianou Goldberg, Pinelopi & Pavcnik, Nina, 2003. "The response of the informal sector to trade liberalization," Journal of Development Economics, Elsevier, vol. 72(2), pages 463-496, December.
    10. Luiza Neves de Holanda Barbosa & Miguel Nathan Foguel & Charlotte Bilo, 2017. "The Brazilian Government Severance Indemnity Fund for Employees (FGTS) and unemployment insurance savings accounts in other countries: a comparative analysis of their effects on the labour market," Working Papers 164, International Policy Centre for Inclusive Growth.
    11. Orellano, Veronica I. F. & Picchetti, Paulo, 2005. "An Analysis of Quit and Dismissal Determinants between 1988 and 1999 using the Bivariate Probit Model," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 25(1), May.
    12. Joana Simões de Melo Costa, 2016. "Effects of domestic worker legislation reform in Brazil," Working Papers 149, International Policy Centre for Inclusive Growth.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zwick, Thomas, 1999. "Innovations induce asymmetric employment movements," ZEW Discussion Papers 99-24, ZEW - Leibniz Centre for European Economic Research.
    2. Gilles Dufrénot & Valérie Mignon, 2002. "La cointégration non linéaire : une note méthodologique," Économie et Prévision, Programme National Persée, vol. 155(4), pages 117-137.
    3. McKay, Alisdair & Reis, Ricardo, 2008. "The brevity and violence of contractions and expansions," Journal of Monetary Economics, Elsevier, vol. 55(4), pages 738-751, May.
    4. Hassink, W.H.J. & Broersma, L., 1993. "Labour demand and job-to-job movement : macro-consequences as a result from micro-economic behaviour," Serie Research Memoranda 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    5. Pfann, Gerard A., 1996. "Factor demand models with nonlinear short-run fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 20(1-3), pages 315-331.
    6. Manfred M. Fischer & Wolfgang Koller, 2001. "Testing for Non-Linear Dependence in Univariate Time Series: An Empirical Investigation of the Austrian Unemployment Rate," ERSA conference papers ersa01p233, European Regional Science Association.
    7. Ray Barrell & Dirk Willem te Velde, 2002. "European Integration and Manufactures Import Demand: An Empirical Investigation of Ten European Countries," German Economic Review, Verein für Socialpolitik, vol. 3(3), pages 263-293, August.
    8. 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.
    9. David E. A. Giles, 1997. "Testing for Asymmetry in the Measured and Underground Business Cycles in New Zealand," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 225-232, September.
    10. Stevens, Philip Andrew, 2007. "Skill shortages and firms' employment behaviour," Labour Economics, Elsevier, vol. 14(2), pages 231-249, April.
    11. Skalin, Joakim & Teräsvirta, Timo, 2002. "Modeling Asymmetries And Moving Equilibria In Unemployment Rates," Macroeconomic Dynamics, Cambridge University Press, vol. 6(2), pages 202-241, April.
    12. Gustavo Gonzaga, 2003. "Labor Turnover and Labor Legislation in Brazil," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2003), pages 165-222, August.
    13. Franchi, Massimo & Ordóñez, Javier, 2011. "Multiple equilibria in Spanish unemployment," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 71-80, February.
    14. Robert A Buckle & David Haugh & Peter Thomson, 2002. "Growth and volatility regime switching models for New Zealand GDP data," Treasury Working Paper Series 02/08, New Zealand Treasury.
    15. Akram,Q.F. & Nymoen,R., 2001. "Employment behaviour in slack and tight labour markets," Memorandum 27/2001, Oslo University, Department of Economics.
    16. W A Razzak, 1998. "Business cycle asymmetries and the nominal exchange rate regimes," Reserve Bank of New Zealand Discussion Paper Series G98/4, Reserve Bank of New Zealand.
    17. Thomas Lux, 1992. "A note on the stability of endogenous cycles in Diamond's model of search and barter," Journal of Economics, Springer, vol. 56(2), pages 185-196, June.

    More about this item

    JEL classification:

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

    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:rio:texdis:398. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/dpucrbr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.