Amendment 110/2001 and the Dynamics of Brazilian Labour Market

Allyne de Almeida Ferreira Ramos () and Paulo Aguiar do Monte ()
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Allyne de Almeida Ferreira Ramos: Federal University of Paraiba
Paulo Aguiar do Monte: Federal University of Paraiba

The Indian Journal of Labour Economics, 2021, vol. 64, issue 2, No 5, 370 pages

Abstract: Abstract This article aimed at evaluating whether the increase in termination fines for the Brazilian Government Severance Indemnity Fund for Employees (Fundo de Garantia do Tempo de Serviço–FGTS) (amendment No. 110/2001) from 40 per cent to 50 per cent, concerning employees dismissed without just cause, has affected the dynamics of dismissals in the Brazilian formal labour market. Data from the Social Information Annual List (Relação Anual de Informações Sociais–RAIS) 2001–2002, descriptive and econometric analyses using fixed effects panel data and quantile regressions for panel data suggested that passing the amendment 110/2001 helped reducing dismissals without just cause. This may also have contributed to reduce possible “agreements” or “collusion” between the employee and the employer to the employees gets the benefits that he/she is entitled to when get fired without justification.

Keywords: Employees; Turnover; Government; Legislation (search for similar items in EconPapers)
JEL-codes: J24 J38 J41 J63 K31 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41027-021-00315-z

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