CEU eTD Collection (2020); Bittencourt, Glauco Ferreira: The Brazilian Labor Reforms of 2017: How Does the Flexibilization of Employment Protection Legislation Affect Wages?

CEU Electronic Theses and Dissertations, 2020
Author Bittencourt, Glauco Ferreira
Title The Brazilian Labor Reforms of 2017: How Does the Flexibilization of Employment Protection Legislation Affect Wages?
Summary The purpose of this thesis is to estimate the effects of the Brazilian labor reforms on the average wage of workers. In November 2017, the biggest legislative package of amendments of employment protection legislation (EPL) was enacted in Brazil. Among many revisions, important legislative changes were implemented, such as the abolition of compulsory union contribution; introduction of intermittent contracts; prevail of individual and collective agreements over state legislation; and introduction of a mutual contract termination agreement with a lower severance payment. These legislative changes are assessed to estimate their effects on average wages of workers by using repeated cross-section data and a difference-in-differences methodology with fixed-effects. The identified control group is composed of civil servants and the treatment group is formed of workers in the private sector. The results suggest that loosening employment protection legislation - at least in the Brazilian context - leads to a decrease of average wages in the labor market.
Keywords: Flexibilization; Labor Market; Employment Protection Laws; Brazilian Labor Market; EPL; Brazil
Supervisor Muço, Arieda
Department Economics MA
Full texthttps://www.etd.ceu.edu/2020/bittencourt_glauco.pdf

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