Severe Unemployment in Rural Brazil

Abstract

This study seeks to measure the probability for having rural severe unemployment (more than 12 months) in Brazil and its regions. For this purpose, the Pesquisa Nacional por Amostra de Domicílios Contínua (PNADC) of the 2nd quarter was used, which contains Bolsa Família Program (PBF) information. In addition, econometric estimation was runned by using a Probit model. The results showed that, when receiving PBF and having a retired family member with low level of education, the likelihood of rural workers being severely unemployed in Brazil increases. For rural regions, the results were like those found at the national level; however, there was a change in probability signs, identifying heterogeneity in the rural labor market. This heterogeneity was clear between the Northeast regions, where family farming is predominant, and the Midwest, a region driven by larger scale production.