The impact of unemployment insurance on reinsertion wages in 2015 in the rural environment of Brazil

Abstract: This work sought to provide new evidence on the impact of the Brazilian Unemployment Insurance Program (Programa Seguro-Desemprego) on the reinsertion wages of its beneficiaries, considering the Brazilian rural environment. Datafrom the National Household Sample Survey (Pesquisa Nacional por Amostra de Domicílios- PNAD) of 2015 was used, as well as the Sharp model discontinuity regression method. The results showed a positive effect on the reinsertion wages of individuals who participated in the Unemployment Insurance Program in rural Brazil. When disaggregating by Brazilian regions, the Southeast region had a greater positive effect on reinsertion wages, while the Midwest region has a negative effect on workers who participated in the Unemployment Insurance Program. Among the main conclusions, it is a fact that the Unemployment Insurance program had a positive effect for Brazilian formal rural workers residing in the Southeast of the country, but a negative effect for those residing in the Center-West region of Brazil.