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Who is the first to become unemployed? A transition analysis

Abstract

The objective of this paper is to analyze the transition from employment to unemployment in the Brazilian labor market. Specifically, the study aims to understand what effect the quality a citizen’s current employment has on the probability of them losing their job in the future. The intention is to understand how personal and socioeconomic characteristics, human capital and occupation characteristics can influence the probability of workers becoming unemployed. Data from the Monthly Employment Survey (PME) for the years 2002 to 2016 are used. The results show that workers in higher categories of employment are less likely to lose their jobs. Moreover, it is observed that the choice of occupational category tends to be more important for women than for men, that is, the effects of inadequate choices negatively affect the probability of future employment.

Keywords:
Transition; Employment; Unemployment; Occupational category; PME

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