Eduardo Pontual Ribeiro

Dynamic Entry and Exit Linkages in the Brazilian Manufacturing Industry: An Econometric Investigation

Abstract The paper investigates dynamic linkages between entry and exit rates in Brazilian manufacturing in the context of 231 (four-digit) industries during the 1996–2005 period. The empirical analysis focuses on the estimation of a dynamic panel data model for entry and exit rates, and controls for the business cycle and structural characteristics, such as industrial concentration and suboptimal scale. The empirical evidence is partially consistent with a multiplier effect where synergetic factors prevail by exit inducing exit. Evidence partially supports a competition effect that could be related to a selection process favoring efficiency, as exit induces entry. The business cycle control variable and the aforementioned structural variables appear to play no role in delineating entry and exit linkages. The results are similar, although not identical, to previous evidence for developed countries.

Fluxo de empregos, fluxo de trabalhadores e fluxo de postos de trabalho no Brasil

Job flows, workers flows and employment flows in Brazil. The labor market is in constant flux. When measuring labor market mobility, it is usual to estimate labor market flow statistics, such as worker reallocation and job reallocation. The goal of this paper is to present previously unknown within plant job reallocation statistics for Brazil. The within plant job reallocation is measured as changes in the occupational mix of the plant. The within plant job reallocation allows a decomposition of worker turnover decomposition into matching, technological change and labor demand factors. Using formal labor market data for Brazil, from 1996 to 2001, our results suggest that technological change accounted for a limited share of worker turnover. More than a quarter of worker turnover can be attributed to labor demand shifts and more than 50% of worker turnover is due to matching.

A closer look at the skilled labor demand increase in Brazil

Purpose - The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology output growth and skill-biased technical change. Design/methodology/approach - This study relies on a rich and unique matched employer-employee data set for manufacturing sector, from 1996 to 2003. The analysis considers a translog functional form labor demand system estimated using seemingly unrelated regression and instrumental variables to control for possible measurement errors and wages and output endogeneity. Findings - The demand function estimates suggest that: labor demand underlying technology is non-homothetic, research and development investment is biased toward skilled workers, the non-homothetic technology is not skill biased so output changes contributed positively for skilled labor increase, relative wages played a significant role and international trade has little explanatory power explaining labor demand shifts. Originality/value - This is the first paper that considers alternative explanations for the increase in the demand of skilled workers for manufacturing in Brazil simultaneously: changes in relative wages, output changes with non-homothetic technology, skill-biased technical change and, to a lesser extent, international trade. The study challenges current empirical evidence that considers trade and trade liberalization as the main factor explaining labor demand shifts.

Stock Market Firm Value Effects of Research and Development Expenditures in the Oil and Gas Industry

This paper evaluates the market firm value response to research and development (R&D) expenditures in the Oil and Gas Industry (O&G). R&D projects are seen as key to long term firm survival in the Oil and Gas industry. But the uncertainty associated with R&D success may reduce firm value market when a firm expands R&D. Using a panel of O&G firms traded in the New York Stock Exchange, we econometrically estimate the market value effect of R&D. We conclude that R&D expenditures increase firm market value, but with a one year lag, even after controlling for firm differences in book value or earnings and oil and gas reserves.

Economic Analysis in Antitrust: The Case of Brazil

We review the Brazilian experience on the use of economic analysis in antitrust practice. Economic theory provides a sound foundation for working with Constitutional principles that back Antitrust law. This allows economic theory and analysis to play a central role in interpreting evidence in cases. Merger analysis extensively uses economic arguments for rulings in Brazil, with practice following closely international guidelines and standards. Economic analysis is also widely used in abuse of dominance/ monopolization (conduct) cases, but its scope is often limited by per se interpretations. We argue that this state of affairs is influenced by a perception of few robust economic results on agreements or collective dominance/monopolization; more explicit law statements on conduct than in merger analysis; higher risk of judicial challenge of decisions (compared to mergers) and relatively limited expertise. Particularly in a developing country, echoing previous authors, economic analysis can achieve a more prominent role if it is able to provide guidelines for investigation and differentiation between pro-competitive and anti-competitive effects of business practices.

Dinâmica do emprego e custos de ajustamento na indústria do Rio Grande do Sul

We evaluate the structure of adjustment costs in manufacturing employment using Brazilian firm data. While quadratic adjustment costs are widely used this type of costs are not compatible with the extensive within sector gross job flows. Following Varejao and Portugal (2007), we use survival analysis as an empirical tool, as previous results associate non-convex adjustment costs with inactivity time dependent exit probabilities. Our estimates using quarterly firm level data from manufacturing industries, from 1991 to 2004 soundly reject time independent exit probabilities from labor adjustment inactivity, a result that is compatible with non-convex adjustment costs.

Criação e destruição de emprego na indústria e os efeitos do câmbio e da abertura comercial: o caso da indústria gaúcha nos anos 1990

The goal of this article is to study job and worker flows in manufacturing and the effect of trade liberalization, looking at the case of Rio Grande do Sul State in the 1990x92s. Job flows suggest significant heterogeneity and that within each sector there is simultaneous job creation and destruction. Regarding the effect of the exchange rate and trade liberalization, depreciation reduces job destruction and increase job creation symmetrically, leading to net job growth. Yet, there is no effect on job reallocation. Greater openness expands manufacturing by reducing job destruction. The effect of the exchange rate and demand shocks are larger than the effect of trade openness, suggesting that trade liberalization was not the main reason for manufacturing employment contraction over the period.