Labour market participation in Brazil: a discrete game approach

Marcelo Resende and Vicente Cardoso

Applied Economics, 2020, vol. 52, issue 17, 1881-1890

Abstract: The article aims at investigating labour market participation of couples in Brazil in 2013. The observed endogenous variables portraying participation are assumed to be the outcome of a static discrete game between the partners. Different solution concepts are considered (Nash, Stackelberg and imposed Pareto optimality). The evidence, in comparison with previous evidence for more developed and homogeneous countries, display qualitative similarities in terms of own wage, cross wage and age effects and a stronger inhibiting role of the number of small children in the case of the female partner. In particular, cross-wage effects also indicated gender-asymmetry. Additionally, one identifies a slightly better fit in the case of the Stackelberg male leader model that could be suggestive in terms of the relevance of cultural aspects on labour market participation, but the differences among the different models are not striking.

Date: 2020
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Working Paper: Labour Market Participation in Brazil: A Discrete Game Approach (2017)
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DOI: 10.1080/00036846.2019.1680792

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