The evolution of precariousness in regional labor markets in Brazil and Mexico

an approach based on the analysis of main components and panel data

Abstract

This paper aims to evaluate how the labor precariousness evolved in Brazil and Mexico between 2012 and 2017 and what were the factors impacting its incidence. To accomplish this objective, we propose a labor precariousness index constructed through principal component analysis. The index was used to assess how labor precariousness evolved in both countries and as a dependent variable of a time-fixed effects model, used to assess whether labor market conditions, labor market structure and the system of labor regulation influences the level of precarity. The results for the index show that precariousness has risen in Mexico and decreased in Brazil and that the main reason may be the 2012 Mexican labor reform, given that even though Brazilian labor Market conditions were worse, the maintenance of a protective labor legislation may have counteracted the process of precarization.

 

KEYWORDS: Labor market precariousness. Principal component analysis. Time-fixed effects.

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Published
2019-07-03
How to Cite
Caldeira, C. D. (2019). The evolution of precariousness in regional labor markets in Brazil and Mexico: an approach based on the analysis of main components and panel data. Labor and Human Development Law Journal, 2(1). https://doi.org/10.33239/rtdh.v2i1.41
Section
Artigos para o Dossiê “Significado e impactos da reforma trabalhista"