The added worker effect for married women and children in Brazil: a propensity score approach

Advisor: Gustavo Gonzaga

The added worker effect (AWE) is the increase in the likelihood of an individual entering the labor force in response to the household head's job loss. This dissertation estimates the AWE for married women and children in Brazil using a propensity score approach. We find evidence of a significant AWE for both groups, in particular for the children. We also investigate the recent surge in the Brazilian population of young people not in work, employment or training (NEET) using the same AWE framework. Our results suggest that the increase in real wages and shorter unemployment spells Brazil experienced in recent years played a significant role in the Brazilian NEET phenomenon.