The gender difference in wage losses after leaving formal employment in Brazil

Eloiza Regina Ferreira de Almeida () and Renata Narita

No 2024_01, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: This article investigates gender differences in wage losses in Brazil resulting from job dismissal and periods of non-formal employment. It examines the wage dynamics of men and women to determine the occurrence and magnitude of these losses, as well as the subsequent recovery process upon returning to formal employment. Using administrative employer-employee data from 2003 to 2018, the study employs a matching strategy and event-study estimation to analyze the transitions from formal employment. Estimations are conducted separately for men and women. The findings reveal that both genders experience immediate and persistent wage losses after leaving formal employment. Women generally experience lower losses (7.4%) compared to men (10.5%), but men exhibit a faster recovery within the first three years after reentering formal employment. Additionally, longer periods of non-formal employment are associated with higher wage losses. Workers who voluntarily leave their jobs experience losses 60% lower than those who are dismissed, and they fully recover their wages within the second year after reentering formal employment. This study emphasizes the importance of examining job transitions and their impact on wages throughout individuals' careers, particularly concerning gender differentials.

Keywords: Wage differences; gender differences; job dismissal (search for similar items in EconPapers)
JEL-codes: J16 J31 J63 (search for similar items in EconPapers)
Date: 2024-01-09
New Economics Papers: this item is included in nep-dev, nep-gen, nep-iue and nep-lam
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