Abstract
Abstract: This work sought to provide new evidence on the impact of the Brazilian Unemployment Insurance Program (Programa Seguro-Desemprego) on the reinsertion wages of its beneficiaries, considering the Brazilian rural environment. Datafrom the National Household Sample Survey (Pesquisa Nacional por Amostra de Domicílios- PNAD) of 2015 was used, as well as the Sharp model discontinuity regression method. The results showed a positive effect on the reinsertion wages of individuals who participated in the Unemployment Insurance Program in rural Brazil. When disaggregating by Brazilian regions, the Southeast region had a greater positive effect on reinsertion wages, while the Midwest region has a negative effect on workers who participated in the Unemployment Insurance Program. Among the main conclusions, it is a fact that the Unemployment Insurance program had a positive effect for Brazilian formal rural workers residing in the Southeast of the country, but a negative effect for those residing in the Center-West region of Brazil.
Highlights
The unemployment insurance program (Programa Seguro Desemprego – Programa Seguro-Desemprego (PSD)) in Brazil has been used as a source of temporary income, allowing an unemployed worker to be more selective in the “choice” of the job, while at the same time, opening up new opportunities to improve their professional training (Balbinotto Neto & Zylberstajn, 2002; Barros et al, 2002)
Seeking to reverse a possible negative correlation between unemployment insurance and investment in human capital, Chahad (2000) makes some suggestions, among them, to promote, compulsorily, for workers to receive the insurance value, and professional training for the beneficiaries, which would enable a higher level of human capital and possibly a reintegration into the job market with a higher wage level, since receiving this benefit would become a signal for worker productivity, while at the same time subsidizing their basic needs until their reallocation in the job market
In order to assess the impact of the PSD unemployment insurance program on reinsertion wages of beneficiaries in the rural area of Brazil, an analysis was made of the difference in the means between the workers who received aid when they left their previous jobs, compared to the workers who did not meet the requirements for receiving the insurance benefit
Summary
The unemployment insurance program (Programa Seguro Desemprego – PSD) in Brazil has been used as a source of temporary income, allowing an unemployed worker to be more selective in the “choice” of the job, while at the same time, opening up new opportunities to improve their professional training (Balbinotto Neto & Zylberstajn, 2002; Barros et al, 2002). The hypothesis proposed here is that unemployment insurance contributes positively to increasing the reinsertion wages of unemployment program beneficiaries in Brazilian rural environment. In Brazil, we are unaware of any work that provides evidence about the impact of the country’s unemployment insurance program on the reinsertion wages of its beneficiaries, considering Brazilian rural environment, for agricultural and non-agricultural occupations. For such purposes, we adopt the Sharp model discontinuity regression method.
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