mpacts of minimum wage policy and formal labor taxation on family well-being and decisions

investing in education, physical capital or leisure?

Authors

  • Elianara Gomes dos Santos Universidade Feral do Rio de Janeiro -UFRJ https://orcid.org/0009-0006-9391-5374
  • Joanna Georgios Alexopoulos Universidade Estadual de Londrina -UEL

DOI:

https://doi.org/10.5433/2317-627X.2024.v12.n2.48430

Keywords:

Fiscal policy, general equilibrium computable model, minimum wage

Abstract

This paper presents an approach of the interaction between fiscal policy and unemployment through a stochastic general equilibrium model (DSGE), which mainly analyzes the effects of labor tax policies on unemployment. The model allows us to consider formal and informal labor markets, to evaluate the qualification award in Brazil, and it corroborates the idea that the Brazilian formal labor market is strongly explained by its own rigidity rather than by economic dynamics. The theoretical model was calibrated for the Brazilian economy and using a partial equilibrium analysis, the results showed the tradeoff between investment in capital and education, leisure and labor supply in the formal and informal sector of the families.

Author Biographies

Elianara Gomes dos Santos, Universidade Feral do Rio de Janeiro -UFRJ

Docteorate Student - Universidade Federal do Rio de Janeiro (UFRJ). Master In Regional Economics- Universidade Estadual de Londrina (UEL ). 

Joanna Georgios Alexopoulos, Universidade Estadual de Londrina -UEL

Philosophy Doctor In Economics -University of Illinois at Urbana Champaign (2012). Professor at Universidade Estadual de Londrina.

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Published

2024-06-11

How to Cite

Gomes dos Santos, E., & Georgios Alexopoulos, J. (2024). mpacts of minimum wage policy and formal labor taxation on family well-being and decisions: investing in education, physical capital or leisure?. Economia & Região, 12(2), 277–302. https://doi.org/10.5433/2317-627X.2024.v12.n2.48430