THE EFFECT OF THE EXPANSION OF FEDERAL INSTITUTES AND UNIVERSITIES ON THE LABOR MARKET

Abstract

We evaluate the impact of the expansion of federal universities and institutes
of education on the labor market performance of the Brazilian municipalities between
2000 and 2010. Specifically, we evaluate the effect of such expansion on labor activity,
occupation and formalization rates and on entrepreneurship indicators. We use data
from the 2000 and 2010 demographic censuses and from Sistema Integrado de Monitoramento,
Execução e Controle do Ministério da Educação (Simec), for the assembly of a
panel of municipalities. The empirical strategy adopted is the method of difference in
differences with an econometric specification that allow for the possibility of synergy
between the concomitant expansion of the two institutions. There is positive evidence
of impact and synergies on the employment rate and the formalization of jobs.