Exploring the ‘stigma effect’ of unemployment on the Brazilian labour market: evidence from a theoretical job search model

Carolina Guinesi Mattos Borges, Juan Pablo Gama Torres and Mariangela Furlan Antigo

Revista Brasileira de Economia - RBE, 2025, vol. 78, issue 4

Abstract: A theoretical job search model incorporating the “stigma effect” of long-term unemployment was developed to analyse the Brazilian labour market considering different educational levels between 2012 and 2021. Results from the parameterized model indicate that firms are less likely to hire long-term unemployed individuals. Worse still, women and individuals with lower educational attainments suffer the most from the scarring effect. Those with lower educational attainments and in long-term unemployment not only face the "stigma effect"of finding a job, but they might be facing monetary hardships that also affect other aspects in life and well-being.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgrbe:v:78:y:2025:i:4:a:91527

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