Can work sharing sustain employment during economic downturn? Evidence from Brazil
Brazil’s Employment Protection Programme, which reduced hours and subsidized wages during the 2014 recession, helped participating firms maintain higher employment than non‑participants. Its positive impact grew over time, indicating the programme effectively sustained jobs.
Subject Tags
- Policy, Finance, and Markets
- Business and Industry
- Social Sciences
Abstract
This paper assesses the impact of the Employment Protection Programme (EPP) on employment outcomes in Brazil. The EPP was a work-sharing programme with a reduced work schedule that featured wage subsidies. It was created to preserve jobs during a recession that started in 2014. Using administrative data of the programme, the results of this study show that establishments that participate in the programme present higher employment levels than non-participant establishments during and after the programme. Furthermore, the effect of the EPP on employment increases over time. These findings suggest that the programme was an effective tool to sustain employment levels.
Citation
Cravo, T.A., de Andrade Jacinto, P. and Quintana, R., 2024. Can work sharing sustain employment during economic downturn? Evidence from Brazil. Labour Economics, 90, p.102584. https://doi.org/10.1016/j.labeco.2024.102584
TNC Authors
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Rodrigo Quintana
Global Conservation Strategy Advisor, Latin America
The Nature Conservancy
Email: rodrigo.quintana@tnc.org