2017 Labor Reform and flexibility: evidence from Brazil’s construction industry

Authors

DOI:

https://doi.org/10.11606/1980-5330/ea203587

Keywords:

labor reform, flexibilization, construction industry, employment, wage

Abstract

The Brazilian Labor Reform of 2017 promoted more flexible employment contracts. Empirical evidence indicates that flexibilization increases employment, but it can lead to welfare losses. In this sense, this study aimed to analyze the relationship between intermittent and part-time contracts and employment, working hours, and wages in the construction industry. The empirical strategy adopted consisted of using a difference-in-differences model on a panel of firms extracted from the RAIS database, for the period from 2015 to 2019. The results suggest an increase in employment, accompanied by a reduction in wages and working hours in the sector.

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Author Biographies

  • Antônio de Oliveira Leite Neto, Federal University of Bahia

    Universidade Federal da Bahia. E-mail: antonioleiteneto1998@gmail.com

  • Diana Lúcia Gonzaga da Silva, Federal University of Bahia

    Universidade Federal da Bahia. Email: dlgsilva@ufba.br

    https://orcid.org/0000-0002-6087-918X

  • Stélio Coêlho Lombardi Filho, Federal University of Bahia

    Universidade Federal da Bahia. Email: stelio.filho@ufba.br

    https://orcid.org/0000-0001-7753-5351

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Published

2025-06-01

Issue

Vol. 29 No. 2 (2025)

Section

Papers

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How to Cite

Leite Neto, A. de O., Silva, D. L. G. da, & Lombardi Filho, S. C. (2025). 2017 Labor Reform and flexibility: evidence from Brazil’s construction industry. Economia Aplicada, 29(2), 291-327. https://doi.org/10.11606/1980-5330/ea203587