The impact of the program Microempreendedor Individual in the Brazilian labor market

Authors

  • Regis Augusto Ely Departamento de Economia Universidade Federal de Pelotas (UFPel)
  • Daniel de Abreu Pereira Uhr Departamento de Economia Universidade Federal de Pelotas (UFPel)
  • Júlia Gallego Ziero Uhr Departamento de Economia Universidade Federal de Pelotas (UFPel)

DOI:

https://doi.org/10.31501/ealr.v10i2.9663

Abstract

This article evaluates the impact of a legislation called Microempreendedor Individual (MEI) on the following dimensions of the Brazilian labor market and entrepreneurial activity: (i) probability of credit demand, (ii) probability of credit approval, (iii) probability of having more than one job, (iv) hours of work in the main job and in all jobs, and (v) productivity of work. In addition, we investigate the existence of heterogeneous and regional effects of the program through the analysis of sub-samples based on the sex of the individuals and the regions of the country. For this purpose we use data from Pesquisa Nacional por Amostra de Domicílios (PNAD) for the year 2014 and we apply three different estimation methods for complex surveys: ordinary least squares, Propensity Score Weighting and Propensity Score Matching. The results indicate that MEI program increases the probability of demanding credit by around 10 percentage points, as well as the hours of work and productivity of men by 10% and women by almost 30%. The effects are most intensified in the Midwest, North and Northeast regions.

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Author Biography

Regis Augusto Ely, Departamento de Economia Universidade Federal de Pelotas (UFPel)

Sou Professor Adjunto no Departamento de Economia e no Mestrado em Economia Aplicada (PPGOM) da Universidade Federal de Pelotas (UFPel), bem como Doutor em Economia pela Universidade de Brasília (UnB). Minhas principais áreas de pesquisa são finanças, economia bancária e economia do trabalho.

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Published

2019-08-31

Issue

Vol. 10 No. 2 (2019): Economic Analysis of Law Review

Section

Papers

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