Probability of Informal Labor Market Insertion – Analysis of the Metropolitan Region of Greater Vitória from the Perspective of Education
Name: ANTONIO RICARDO FREISLEBEM DA ROCHA
Publication date: 22/02/2024
Examining board:
Name |
Role |
|---|---|
| DANIEL RICARDO DE CASTRO CERQUEIRA | Examinador Externo |
| EDSON ZAMBON MONTE | Examinador Interno |
| PABLO SILVA LIRA | Examinador Externo |
| RICARDO RAMALHETE MOREIRA | Presidente |
| ROBSON ANTONIO GRASSI | Examinador Interno |
Summary: This research analyzed the influence of years of study and the completion of school cycles on the probability of labor force participation and informal employment in the Metropolitan Region of Greater Vitória/Espírito Santo, between 2012 and 2019. To correct for selection bias, the Heckman procedure was used, and to mitigate the endogeneity of the education variable, caused by educational choice and individuals' ability, the "Stratum" variable was used. The Bootstrap technique was also used to verify the robustness of the results across different models. The results indicated that the increase in the probability of labor market participation, with the completion of educational cycles of basic education, and the higher probability of participation in the formal sector, with the completion of basic and higher education, are factors that tend to increase the labor income of individuals during their working life cycle. It also became evident the importance of some variables that were used as controls, such as the union variable, which showed the highest magnitude among the variables used and is closely related to the analyzed region. Lastly, the results suggest that labor market informality functioned as a cushion after 2016, as the unfavorable economic performance after that year increased the chances of individuals participating in the labor market as informal workers. Another highlight was the certificate inflation, resulting from an increased supply without a corresponding increase in the quality of education or alignment with the demands of the labor market, which could result in a saturation of the labor market with certificate -holding professionals and have important implications for the productivity and development of the region.
