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Improvement of education contributes to a decrease in informal work

07/23/2012

This article was translated by an automatic translation system, and was therefore not reviewed by people.



 


The training is not always quality, but the increase in the number of years studied has contributed significantly to the generation of formal jobs. Recent research by the Brazilian Institute of Economics (Ibre), Getulio Vargas Foundation (FGV), reveals that 60% of the decline in informality between 2002 and 2009 arising from the Brazilian higher education.

Based on data from the National Household Sample Survey (PNAD), the Brazilian Institute of Geography and Statistics (IBGE), the researchers divided the fall of the informality of two components. The composition effect is related to educational background. The level effect measures other factors such as economic growth, credit expansion and government stimulus measures. The predominance of Education surprised the researchers.

"This result caused us amazement, and shows, above all, that education is changing many aspects of the economy, including the structure of the labor market," says Rodrigo Moura, who did the research with Professor Fernando Holanda Barbosa Filho.The study considered only as informal workers employed unregistered. Professionals who work for themselves, such as electricians and plumbers, were classified as formal workers.

At the discretion of the researchers, the rate of informality among workers fell from 43.6% in 2002 to 37.4% in 2009. In the same period, were created about 9 million formal jobs across the country. In all tracks education, the rate of informal dropped. This decline is linked to the level effect because, for the same level of education, the economy created more formal jobs.

The composition effect appears when comparing the time of study to the total workforce. From 2002 to 2009, the share of workers without a high school degree fell from 66% to 53%. In this case, the mere gain of years of schooling significantly boosts the formalization, because the proportion of informal workers is much higher in populations with less education.

In high school, the seller Rodrigo Castro, 21, works in a bank of computer products in the Fair Imports in Brasilia. He believes that the study was crucial to get formal employment. "Education did not qualify well, but it helped," he says. Before the first formal employment, Rodrigo worked for about a year and a half without a contract in an Internet cafe in Bahia.

For Rodrigo Moura, co-author of the FGV survey, after increasing the time of the study population, the country's next challenge will be to improve the quality of education. "Brazil today has a higher proportion of workers with high school and university, but the percentage of private institutions of higher education of high quality is very low," he says.

Despite the questionable quality of much of higher education institutions, the cafeteria manager Fernanda Santos, 30, does not intend to drop out of school. Currently in first job, she has completed high school, but the administration intends to take to get a better job and adapt to an increasingly demanding market.
"Today, most employers will only accept those who have higher level," notes



Source: JB Online - Journal of Brazil

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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