Labour Market Participation in Brazil: A Discrete Game Approach

28 Pages Posted: 15 Mar 2017

See all articles by Marcelo Resende

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Vicente Cardoso

Banco Nacional de Desenvolvimento Econômico e Social (BNDES)

Date Written: February 14, 2017

Abstract

The paper aims to investigate the labour market participation of couples in Brazil in 2013. The observed endogenous variables portraying participation are assumed to be the outcome of a static discrete game between the partners. Different solution concepts are considered (Nash, Stackelberg and imposed Pareto optimality), and the estimations are implemented for rural and urban areas. The evidence, in comparison with previous evidence for more developed and homogeneous countries, displays qualitative similarities in terms of own wage, cross wage and age effects and a stronger inhibiting role of the number of small children in the case of the female partner. In particular, cross-wage effects also indicated gender asymmetry. Additionally, one identifies a more limited role of schooling on labour market participation in rural areas and gender contrasts in terms of the number of persons in the household that have a positive significant effect only for male partners.

Keywords: labour market participation, discrete game, Brazil

JEL Classification: J210

Suggested Citation

Resende, Marcelo and Cardoso, Vicente, Labour Market Participation in Brazil: A Discrete Game Approach (February 14, 2017). CESifo Working Paper Series No. 6337, Available at SSRN: https://ssrn.com/abstract=2932753

Marcelo Resende (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Vicente Cardoso

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) ( email )

Av. Republica do Chile
100 - 12nd. Floor
100 Rio de Janeiro, 20001-970
Brazil

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