Economic expansion and increase in labout market formality: a poaching approach

This paper investigates the relationship between economic expansion and the degree of formalization for the Brazilian labour market in the recent period. We present a theoretical framework that attempts to explain this relationship through the dynamics of firms hiring strategies. The main predictions are: the share of formal employment rises as the unemployment rate falls, and that the formal-informal wage gap increases, at least at the beginning of the economic expansion. In the empirical part, we use longitudinal microdata from a Brazilian household survey to check whether these two predictions are confirmed. To a large extent our results corroborate both predictions.

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Main Authors: Corseuil,Carlos Henrique L., Foguel,Miguel Nathan
Format: Digital revista
Language:English
Published: Fundação Getúlio Vargas 2012
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402012000200004
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spelling oai:scielo:S0034-714020120002000042012-06-22Economic expansion and increase in labout market formality: a poaching approachCorseuil,Carlos Henrique L.Foguel,Miguel Nathan Informality Business-cycle Hirings This paper investigates the relationship between economic expansion and the degree of formalization for the Brazilian labour market in the recent period. We present a theoretical framework that attempts to explain this relationship through the dynamics of firms hiring strategies. The main predictions are: the share of formal employment rises as the unemployment rate falls, and that the formal-informal wage gap increases, at least at the beginning of the economic expansion. In the empirical part, we use longitudinal microdata from a Brazilian household survey to check whether these two predictions are confirmed. To a large extent our results corroborate both predictions.info:eu-repo/semantics/openAccessFundação Getúlio VargasRevista Brasileira de Economia v.66 n.2 20122012-06-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402012000200004en10.1590/S0034-71402012000200004
institution SCIELO
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country Brasil
countrycode BR
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databasecode rev-scielo-br
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libraryname SciELO
language English
format Digital
author Corseuil,Carlos Henrique L.
Foguel,Miguel Nathan
spellingShingle Corseuil,Carlos Henrique L.
Foguel,Miguel Nathan
Economic expansion and increase in labout market formality: a poaching approach
author_facet Corseuil,Carlos Henrique L.
Foguel,Miguel Nathan
author_sort Corseuil,Carlos Henrique L.
title Economic expansion and increase in labout market formality: a poaching approach
title_short Economic expansion and increase in labout market formality: a poaching approach
title_full Economic expansion and increase in labout market formality: a poaching approach
title_fullStr Economic expansion and increase in labout market formality: a poaching approach
title_full_unstemmed Economic expansion and increase in labout market formality: a poaching approach
title_sort economic expansion and increase in labout market formality: a poaching approach
description This paper investigates the relationship between economic expansion and the degree of formalization for the Brazilian labour market in the recent period. We present a theoretical framework that attempts to explain this relationship through the dynamics of firms hiring strategies. The main predictions are: the share of formal employment rises as the unemployment rate falls, and that the formal-informal wage gap increases, at least at the beginning of the economic expansion. In the empirical part, we use longitudinal microdata from a Brazilian household survey to check whether these two predictions are confirmed. To a large extent our results corroborate both predictions.
publisher Fundação Getúlio Vargas
publishDate 2012
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402012000200004
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AT foguelmiguelnathan economicexpansionandincreaseinlaboutmarketformalityapoachingapproach
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