Spatial hierarchical approach to factors affecting participation in the Brazilian labor market

Abstract

One of the most significant features of unemployment is the irregularity of their impact, both socially and spatially. In recent years, researchers and policy makers have shown an increasing interest in the study and interpretation of socio-economic processes at regional level. In this context, studies about the chances of participation in the labor market gain some additional relevance. Thus, this study aims to examine how individual and environmental characteristics influence the probability of employment. Therefore, we employed a logit multilevel model with two hierarchical levels: individual and municipal. Additionally to this approach, we use a spatial hierarchical model in order to handle the problem of spatial autocorrelation. The main results indicate that in Brazil, white men with higher education, and who have a spouse/partner, are more likely to be employed. In addition, there is a strong relationship between income and health indicators – as well as these spatially lagged variables – and the chances of participation in the labor market.