To better understand transitions that took place in the labor market, it is important to consider the flows of being employed, unemployed and outside the labor market, and the probabilities involved, as a function of socio-economic and geographical variables. The econometric model used was the multinomial logit model, which found that there is a gender difference in regards to being employed and outside the labor market. For the first instance, the probability is greater for men, and for the second situation, it is lower. A positive and decreasing relationship was also found between age and the probability of being employed, and a negative and decreasing relationship between age and the probability of being outside the labor market. With regards to education level, a positive relationship was found with the probability of being employed. When comparing 1995 and 2005, the probability of being unemployed in 2005 was found to be higher.
labor dynamics; labor force participation; multinomial logit