The Effect of Parental Occupation and Family Arragements on Occupational Choices among Brazilian Youth

This paper estimates the added worker effect and discouraged for young people in metropolitan Brazil. Its main contribution is to reveal how transition unemployment by household head impacts labor supply among youth, considering demographic changes – especially size composition of family arrangements that Brazil has undergone recent decades. We designed multinomial probit models (with without correction sample selection bias) covering regions country using data from Brazil’s Monthly Employment Survey (PME) years 2002 2015, which compiles information on monthly transitions Brazilian market. Our findings point evidence a greater men women activation market, specifically inactivity unemployment, periods when became unemployed. On other hand, there no statistically significant impacting these individuals. Furthermore, parents’ occupational situation seems have little males low-income families, unlike those belonging wealthier families.