Segmentation in the Brazilian Labor Market

Fernando Botelho and Vladimir P. Ponczek

No 165, Textos para discussão from Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil)

Abstract: In This Paper, We Examine the Impacts of the Reform in the Rural Pension System in Brazil in 1991On Schooling and Health Indicators. in Addition, We Use the Reform to Investigate the Validity OfThe Unitary Model of Household Allocation By Testing If There Were Uneven Impacts on ThoseIndicators Depending on the Gender of the Recipient. the Main Conclusion of the Paper is That TheReform Had Significantly Positive Effects on the Outcomes of Interest, Especially on Those CoresidingWith a Male Pensioner, Indicating That the Unitary Model is not a Well-SpecifiedFramework to Understand Family Allocation Decisions. the Highest Impacts Were on SchoolAttendance For Boys, Literacy For Girls and Illness For Middle-Age People. We Explore a CollectiveModel as Defined By Chiappori (1992) as One Possible Alternative Representation For the DecisionmakingProcess of the Poor Rural Brazilian Families. in the Cooperative Nash Equilibrium, TheReform Effects Can Be Divided Into Two Pieces: a Direct Income Effect and Bargaining Power Effect.The Data Support the Existence of These Two Different Effects

Date: 2007-07-20
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Related works:
Working Paper: SEGMENTATION IN THE BRAZILIAN LABOR MARKET (2006)
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