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Impact of labor costs reduction on formalization and salary of domestic workers

Grant number: 07/00770-0
Support type:Scholarships in Brazil - Scientific Initiation
Effective date (Start): July 01, 2007
Effective date (End): June 30, 2008
Field of knowledge:Applied Social Sciences - Economics - Economics of Human Resources
Principal Investigator:Luiz Guilherme Dácar da Silva Scorzafave
Grantee:Maria Isabel Accoroni Theodoro Habenschus
Home Institution: Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (FEARP). Universidade de São Paulo (USP). Ribeirão Preto , SP, Brazil


The aim of this project is to analyze the impact of reduction of the working incubencies predicted by the law 11.324 of July 19th, 2006 about the legalization, the unemployment and the wage of the domestic workers. To estimate this causal effect will be used the “differences in differences” estimator. The treatment group will be constituted for the domestic employees and the control groups will be constituted using Propensity Score Matching - PSM. We will use data from Pesquisa Mensal de Emprego (PME) elaborated by IBGE from 2005 to 2007 for metropolitan areas of São Paulo, Rio de Janeiro, Salvador, Recife, Porto Alegre and Belo Horizonte. (AU)