Long unemployment spells may affect the probability of an unemployed get a job, as well as may be related to transitions out of the labor force. Using data from the PME (Pesquisa Mensal de Emprego) covering the period between 2006 and 2013, we estimated duration models that consider transitions from unemployment to different destinations: i) formal employment, ii) informal employment, and iii) inactivity. According to evidence, individual characteristics usually have heterogeneous effects across the types of transition. The results also show that unemployment duration increases the probability of exit from unemployment to employment (formal or informal) and from unemployment to inactivity.
Unemployment duration; Employment; Informality; Inactivity; J60; J64
