A carteira de trabalho no mercado de trabalho metropolitano brasileiro

Abstract

This paper analyses the roles of formal and informal labor contracts in the functioning of metropolitan Brazilian labor market covering the period from 1981101989, with special attention to evaluate the degree of segmentation in labor market. This goal is reached analyzing how these three following variables, (a) wage gap between employees with and without formal labor contract, (b) degree of informality, i.e., the fraction of employees who do not have formal labor contract and (c) unemployment rate, varies over the 1980s, by metropolitan areas, educational levels and age groups. With the study of these three variables over the 1980s we search for evidence which could support the hypothesis that jobs with informal labor relations act as a buffer in economic downturns. Moreover we verify what kind of workers is more sensitivity to a decline in the level of economic activity. In the regional analysis we investigate the correlation between the wage gap and the degree of informality in order to test the dual explanation for the labor market. Analyzing the variations of these variables by qualification (education and age) we verify whether a formal contract protects with more emphasis the less skilled workers.