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Unintended consequences of unemployment insurance legislation: evidence from Brazi

Cristiano Costa Carvalho () and Renata Narita

No 2016_34, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: The aim of this study is to investigate whether the probability of Brazilian formal workers being laid-off increases when they are elegible to receive the unemployment insurance. Using the Brazilian Monthly Employment Survey for the largest metropolitan regions, we estimate the e↵ect of a change in the law on the probability of lay-o↵ for the workers eligible to the benefit. The results point out to a 6,8% rise in this probability in comparison to the non-eligible workers.

Keywords: unemployment insurance; unemployment; informality; labor legislation. (search for similar items in EconPapers)
JEL-codes: J2 J38 J4 J6 (search for similar items in EconPapers)
Date: 2016-12-07
New Economics Papers: this item is included in nep-ias and nep-iue
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Citations: View citations in EconPapers (2)

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