Reinsertion wages in the job market considering the Programa Seguro-Desemprego Unemployment Insurance Program in Brazil
DOI:
https://doi.org/10.33448/rsd-v10i2.12904Keywords:
Unemployment insurance; Reinsertion wage; Regression discontinuity design; Added covariates; Entropy balancing.Abstract
This work provides new estimates of the effect of the Brazilian Unemployment Insurance Program (Programa Seguro-Desemprego) at the national level and disaggregating the data considering urban and rural areas, using data from the National Household Sample Survey (Pesquisa Nacional de Amostra Por Domicílio - PNAD) on individuals for the year 2015. The methodology applied for empirical analysis is the Regression Discontinuity Design (RDD), using added covariates and entropy balancing. Our objective is to analyze if there is an effect of the unemployment benefit on reinsertion wages, and if it there is a positive relationship, based on the theoretical references of the Human Capital Theory and Job Search models. Among the main results found, the unemployment benefit program does not seem to exercise any significant change in the reinsertion wage, except for workers in the rural environment. It was also found that males receive lower reinsertion wages than females, and that the Northeast region of Brazil features the highest reinsertion wages.
References
Addison, J., & Blackburn, M. (2000). The Effects of Unemployment Insurance on Post-Unemployment Earnings. Labour Economics, 7, 21-53. Https://Doi.Org/10.1016/S0927-5371(99)00026-3
Atkinson, A., & Micklewright, J. (1991). Unemployment Compensation and Labor Market Transitions: A Critical Review. Journal Of Economic Literature, 29(4), 1679-1727.
Balbinotto Neto, G., & Zylberstajn, H. (2002). Uso Repetido do Seguro-Desemprego: Teorias E Evidências. In: Chahad, José P. Z, Fernandes, Reynaldo (Orgs.). O Mercado De Trabalho No Brasil: Políticas, Resultados e Desafios. Mte/ Fipe/ Depto. De Economia Fea/Usp, São Paulo.
Balestro, M. V., & Marinho, D. C. N. (2010). Programa Seguro Desemprego: o Desafio Para Equilibrar Proteção Social E Eficiência Econômica. Revista De Políticas Públicas, 14(1), 193-201.
Barros, R. P., Corseuil, C. H., & Foguel, M.. (2000). Os Incentivos Adversos E A Focalização Dos Programas De Proteção Ao Trabalhador No Brasil. Planejamento E Políticas Públicas. Ipea, 22, 4-45.
Brasil (1965). Presidência Da República. Lei 4.923, de 23 de Dezembro de 1965.
Brasil (1986). Presidência Da República. Lei 2.284, de 10 De Março de 1986.
Calonico, S., Cattaneo, M., Farrell, M., & Titiunikm, R. (2018). Regression Discontinuity Designs Using Covariates. Political Analysis. 20, 25-46. Https://Doi.Org/10.1162/Rest_A_00760
Camargo, J. M. (2004). Política Social No Brasil: Prioridades Erradas, Incentivos Perversos. São Paulo em Perspectiva, São Paulo, 18(2), 68-77. Http://Doi.Org/10.1590/S0102-88392004000200008
Card, D., Chetty, R., & Weber, A. (2007). Cash-On-Hand and Competing Models of Intertemporal Behavor: New Evidence from The Labor Market. The Quarterly Journal Of Economics, 122(4), 1511-1560.
Card, D., & Levine, P. (2000). Extended Benefits and the Duration of Ui Spells: Evidence from the New Jersey Extended Benefic Program. Journal of Public Economics, 78, 107-138.
Carling, K., & Holmlund, B., Vejsiu, A. (2001). Do Benefit Cuts Boost Job Findinf? Swedish Evidence from the 1990s. The Economic Journal, 111, 766-790. Https://Doi.Org/10.1111/1468-0297.00659
Castro, A. B. De, & Souza, F. (1985). A Economia Brasileira Em Marcha Forçada. São Paulo: Paz E Terra. Http://Doi.Org/10.1590/S0101-31572008000100002
Cattaneo, M., & Escanciano, J. (2017). Regression Discontinuity Designs: Theory and Applications. Advances in Econometrics. V. 38.
Cattameo, M., Idrobo, N., & Titiunik, R., (2018). A Pratical Introduction To Regression Discontinuity Designs: Volume I, Cambridge Elements: Quantitative And Computational Methods For Social Science, Universidade de Cambridge.
Chahad, J. P. Z. (2003). O Seguro-Desemprego No Contexto do Sistema Público de Emprego e o seu Papel no Combate à Pobreza no Caso Brasileiro. In. Desigualdade E Pobreza No Brasil. Cap. 20. São Paulo, Usp.
Chetty, R., & Finkelstein, A. (2013). Social Insurance: Connecting Theory to Data. Handbook of Public Econommics, 111-193.
Fisher, R. Design Of Experiments. Oliver E Boyd, Edinburgh, 1935.
Fishlow, A. (1986). A Economia Política Do Ajustamento Brasileiro aos Choques do petróleo: Uma Nota Sobre o Período de 1974/84. Pesquisa E Planejamento Econômico, 16(3), 507-550.
Fitzgerald, T. J. (1998). Introduction to the Search Theory Of Unemployment. Feredal Reverve Bank of Cleveland, Economic Review, 34(3), 02-15.
Gil, A. C. (2002). Como elaborar projetos de pesquisa. (4a ed.), Editora Atlas.
Hahn, J., Todd, P., & Van Der Klaauw, W. (2001). Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design. Econometrica. 69, 201-209. Https://Doi.Org/10.1111/1468-0262.00183.
Hainmueller, J. (2011). Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples In Observational Studies. Political Analysis. 20, 25-46. Https://Doi.Org/10.1093/Pan/Mpr025
Han, T. (2018). Assessing the Effects of Reemployment Bonuses on Job Search: a Regression Discontinuity Approach. Journal of Public Economics, 165, 82-100. Https://Doi.Org/10.1016/J.Jpubeco.2018.07.003.
Imbens, G., & Lemieux, T. (2008). Regression Discontinuity Designs: A Guide to Practice. Journal of Econometrics. 142, 615-635. Https://Doi.Org/10.3386/W13039
Lalive, R. (2008). How Do Extended Benefits Affect Unemployment Duration? A Regression Discontinuity Approach. Journal of Econometrics, 142(2), 785-806.
Lee, D., & Lemieux, T., (2010). Regression Discontinuity Designs in Economics. Journal of Economic Literature. 48, 281-355. Https://Doi.Org/10.3386/W14723
Lee, D. (2008). Randomized Experiments from Non-Random Selecion In U.S. Journal of Econometrics. 142, 675-697. Https://Doi.Org/10.1016/J.Jeconom.2007.05.004
Lindner, A., & Reizer, B. (2016). Frontloading the Unemployment Benefit: Na Empirical Assessment. Institute of Economics, Centre For Economic And Regional Studies, Hungarian Academy Of Sciences.
Neyman, J. (1923). On the Application Of Probability Theory to Agricultural Experiments. Statistical Science. 5, 463-480. Https://Doi.Org/0.1214/Ss/1177012032
Pedersen, P., & Westergard-Nielsen, N. (1993). Unemploument: A Review of The Evidence From Panel Data. Oecd Economic Studies, 20, 65-114. Https://Doi.Org/10.25428/1824-2979/201802-231-248
Pereira, A. S., Shitsuka, D. M, Parreira, F. J., & Shitsuka, R. (2018). Metodologia da Pesquisa Cientifica. UFSM https://repositorio.ufsm.br/bitstream /handle/1/15824/Lic_Computacao_Metodologia-Pesquisa-Cientifica.pdf?sequence=1
Pissarides, C. (1992). Loss of Skill During Unemployment and The Persistence of Employment Shocks. Quarterly Journal of Economics, 7(4), 1371-1391. Https://Doi.Org/10.2307/2118392
Pollak, A. (2005). Estimating A Life Cycle Model with Unemployment and Human Capital Depreciation, European Economic Review, Elsevier, 51(8), 2029-2053.
Rubin, D. (1978). Bayesian Inference Ofr Causal Efects: The Role of Randomization. Annals of Statistics. 6(1), 34-58. Https://Doi.Org/10.1214/Aos/1034276631
Schmieder, J., Von Wachter, T., & Bender, S. (2012). The Long-Term Effects of Unemployment Insurance Extensions on Employment. American Economic Review: Papers & Proceedings, 102, 514-519.
Schmieder, J., Von Wachter, T., & Bender, S. (2012). The Effects of Extended Unemployment Insurance Over the Business Cycle: Evidence from Regression Discontinuity Estimates Over 20 Years. The Quarterly Journal of Economics, 127(2), 701-752.
Sehkon, J. (2009). Opiates for The Matches: Matching Methods for Causal Inference. Review of Political Science. 12, 487-498. Https://Doi.Org/10.1146/Annurev.Polisci.11.060606.135444
Tatsiramos, K., & Ours, J. V. (2014). Labor Market Effects of Unemployment Insurance Design. Journal of Economic Surveys, 28, 284-311. Https://Doi.Org/10.1111/Joes.12005
Teixeira, G., & Balbinotto Neto, G. (2016). Seguro-Desemprego Brasileiro E Salário De Reinserção: Análise Empírica Com Regressão Com Descontinuidade E Propensity Score Matching. Nova Economia, Belo Horizonte, 26(3), 943-980. Http://Doi.Org/10.1590/0103-6351/2215.
Trochim, W. (1984). Research Design for Program Evaluation: The Regresion Discontinuity Approach. Journal of The American Statistical Association. 81. Http://Doi.Org/10.1177/0741932507309712
Uusitalo, R., & Verho, J. (2010). The Effect of Unemployment Benefits on Re-Employment Rates: Evidence From The Finnish Unemployment Insurance Reform. Labour Economics, 17(4), 643-654. https://Doi.Org/10.1016/J.Labeco.2010.02.002
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Domingos Isaias Maia Amorim; Francisco José Silva Tabosa; Jair Andrade de Araujo; Ahmad Saeed Khan; Pablo Urano de Carvalho Castelar
![Creative Commons License](http://i.creativecommons.org/l/by/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.