Improvements in education in Brazil decreased labor informality, according to FGV – Getúlio Vargas Foundation

Comments Off | 08-26-2012

Improvements in the schooling of Brazilians coupled with good economic performance over the past decade and public policies aimed at generating employment and income led to a reduction in informal labor between 2002 and 2009. The conclusion is part of the research project ‘Recent Evolution of Informality in Brazil’ by the researchers Fernando Holanda Barbosa Filho and Rodrigo Leandro de Moura from the Brazilian Institute of Economics at the Getulio Vargas Foundation (IBRE-FGV).

The informality rate, which stood at 43.6% in 2002, fell to 37.4% in 2009 – a decrease of 6.2 percentage points, according to the work undertaken by FGV based on data from the National Household Sample Survey.

The lack of formalized labor relations, reflected mainly by the absence of an employment registration card, is inversely proportional to the degree of education: the greater the number of years of education, the greater the level of formal employment. According to the survey there was a decline in informal labor at all education levels.

For those with up to three years of education, 62.8% of workers were informal in 2002; a number which dropped to 59.1% in 2009. Among those who have completed secondary and higher education, with 11 to 14 years of studies, the informality rate was 28.7% in 2002, falling to 24.7% in 2009. Holders of a university degree, who have over 15 years of study, registered a rate of informality of 26.1% in 2002, decreasing to 23.4% in 2009.

The complete survey can be accessed here:

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Posted in FDI Brazil statistics, General |

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