Do Less Skilled Workers Face Crodwing out in the Brazilian Urban Labor Market?

This study aims to verify if the crowding-out effect occurred in Brazilian’s metropolitan regions Brazil during recessions in 1998, 2002 and 2009, under the approach Schult (2002). The results demonstrate that each recession presented peculiarities in the probability of transition from unemployment to employment for individuals. However, the crowding-out effect occurred in 2009. It is also worth to mention that this effect occurred even under a scenario of recession with rising premium for qualification.