Rural migrants in the urban labor market in Brazil: an empirical analysis of the role of informal and formal sectors
DOI:
https://doi.org/10.1590/1980-53574244hrrnKeywords:
rural-urban migration, human capital, informal sector, occupational choiceAbstract
This paper provides an empirical analysis of the insertion of the rural-urban migrant into the urban labor market in Brazil. Three different aspects are specifically considered. First, it provides evidence for the importance of human capital to the insertion of Brazilian rural-urban migrants between formal and informal sector. Second, it investigates if the Brazilian informal sector can be considered as a transitory stage for the migrant who intends to work in the formal sector. Finally, it analyses if the observed insertion of Brazilian rural-urban migrant in the labor market reflects his best possible choice given expected returns to his individual characteristics. The results indicate that the migrant human capital is positively associated to the chance of being allocated to formal sector and that there are barriers to entry in some sectors. The set of evidence is also consistent with the idea that urban informal sector represent a temporary stage for the migrant who intends to work in the formal sector.
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