Labor market transformations: essays on outsourcing and its implications for workers
Labor Regulation, Outsourcing, Labor Reform, Informality, Outsourcing, Entrepreneurship, Formalization
This work comprises two studies examining outsourcing and labor market trends. The first study analyzes the impacts of Brazil’s 2017 labor reform and outsourcing laws on employment patterns, highlighting a shift from traditional formal employment to more flexible, independent work structures, such as Individual Microentrepreneurs (MEI). The findings reveal that labor reforms and deregulation accelerated the growth of individual businesses, with heterogeneous effects across industries and regions. The second study aims to uncover the economic drivers behind labor outsourcing and worker registration as individual entrepreneurs, as well as the financial implications of this transition for different worker profiles. The second study aims to investigate the incentives driving labor outsourcing and the formalization of workers as individual entrepreneurs, as well as the financial implications of this transition for different worker profiles. The results indicate an initial improvement in financial activity indicators immediately after transitioning to entrepreneurship, evidenced by increased credit balances. However, these gains are followed by significant and persistent financial losses after the first year of business operation, underscoring the sustainability challenges faced by new businesses. These findings underscore the need for targeted policies, including financial education, improved credit conditions, and the implementation of accessible and well-structured retirement programs, to provide adequate support for this growing contingent of workers.