Youth and Work: What was the Impact of the Crisis on the Income of Young people?


About the research: 

PNADC microdata reveals that young people were the biggest losers of labor income from 2014 to 2019. Other groups traditionally excluded such as illiterates, blacks and residents of the North and Northeast regions had income reductions at least twice as high as the general average. This loss was 5 and 7 times greater among young people aged 20 to 24 years and among young adolescents, respectively. There is an increase in the inequality of income from work in the group of young people that is 41.2% greater than the increase observed for the population as a whole, indicating the need to understand the dynamics of the different youth segments. Let's see: between the fourth quarter of 2014 and the second quarter of 2019, the loss of accumulated average income of -14.66% of all young people combined. This fall is higher for particular some groups of young people: 15 and 19 years old (-26.54% ), 20 and 24 years old (-17.76%), northeastern (-23.58%) and illiterate (-51.1%).

In general, among young people, the income of the poorest half fell -24.24% against -14.66% of the general youth mean. The factors behind the drop in income and an increase in inequality among young people are the same, namely an increase in unemployment, a reduction in working hours, a drop in wages per hour/year of study. While years of schooling and labor participation, which are the variables most under the control of young people, attenuate the effects of this exclusionary recession.

In the midst of this youth tragedy there are some positive new directions. As of the first quarter of 2017, the average losses and income inequality of these young people is interrupted. The federal government announced the launch of a reduction in labor charges by around 30% for the first job for young people aged 18 to 29 years. There are, albeit modest, improvements in the youth's school attendance. Still, the overall picture is bad. The proportion of those who neither study nor work rises from 23.4% in 2014 to 26.2% in 2019.

The aim of this study is to characterize the labor and educational evolution of young people aged 15 to 29 in the period of rise. We provide an interactive database that allows for exploring the diversity of trajectories observed in this segment and their determining factors.


| Youth and Work: What was the Impact of the Crisis on the Income of Young people?
(In Portuguese)

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Panorama de Decomposição da Renda Trabalhista - Jovens

Entrevista - Marcelo Neri (FGV Social)
Bate-Papo FGV - Trajetória da juventude no mercado de trabalho



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