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Abstract

The goal of this study is to analyze the situation of youth between the ages of 15 and 24 on the Brazilian labor market, seeking to evaluate the magnitude and the determinants of unemployment of Brazilian youth, using the 1988 National Household Sample Survey (PNAD). To understand the characteristics which affect the probability of unemployment of a given individual, a multinomial logit model was estimated for the probability that, at any given moment, a youth will be either inactive, active and employed, or active and unemployed. The results from the multinomial logite model show that an increase in the number of years in school reduces the probability of unemployment among men living in urban areas to be unemployed and increases the probability of unemployment for both men and women in the rural areas, possibly due to higher employment selectivity. Moreover, the probability of unemployment was negatively related to experience for all men and women living in urban areas. The study also found evidence of discrimination against blacks in the labor market and higher probability of unemployment for youths from low-income families.