Corseuil, Carlos Henrique L. Dias, Rodrigo F. Foguel, Miguel N. Santos, Daniel D.
Year of Publication:
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1446
We investigate if the labor market stigmatizes fired workers, by comparing their trajectories with individuals who lost their jobs after the establishments they used to work closed down. Using RAIS data for formal workers, we find that being fired significantly reduces the chances of finding a new formal job, and even when the individual succeed in doing so, he/she receives an initial wage 10% lower than his/her counterpart from a closed establishment. These results are robust to different estimation methods and sets of controls in the regressions.