Job Creation and Job Destruction in Brazil
IPEA Working Paper No. 855
50 Pages Posted: 21 Jan 2002
Date Written: January 2002
The Brazilian labor market has been frequently pointed as extremely flexible. In this paper we investigate one dimension of labor market flexibility, namely, job reallocation. Measuring worker reallocation using establishment level data, we analyze its relation with establishment characteristics, as a preliminary search for reallocation determinants. Our results suggest that, in fact, job reallocation is extremely high in Brazil, although heterogeneous across sectors and establishment size classes. Trade and service sectors have higher job reallocation rates and account for a significant share of total reallocation. Considering firm size, higher job creation and higher reallocation are related to smaller firms.
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JEL Classification: J63
Suggested Citation: Suggested Citation