Enforcement of labor regulations and job flows: evidence from Brazilian cities

Table 10 Enforcement of labor regulations and job flow rates, by average population size in the city

Dependent variable	Job creation rate	Job destruction rate	Net job growth rate	Job reallocation rate	Accession rate	Separation rate
	(1)	(2)	(3)	(4)	(5)	(6)
Panel A: small cities with less than 10,000 persons
Enforcement labor regulations in city-year	4.0695* (1.9938)	− 0.6111 (1.2034)	4.6806 (2.6136)	3.4583 (2.0040)	17.8353*** (4.5676)	13.1547* (6.1029)
R-squared	0.367	0.292	0.291	0.393	0.718	0.723
Observations	15,463	15,463	15,463	15,463	15,463	15,463
Year and city dummies	Yes	Yes	Yes	Yes	Yes	Yes
Panel B: large cities with more than 10,000 persons
Enforcement labor regulations in city-year	1.3986 (0.9642)	− 0.2083 (0.7349)	1.6069 (0.9887)	1.1903 (1.4007)	3.6128* (1.7867)	20,059 (1.5690)
R-Squared	0.557	0.440	0.428	0.594	0.811	0.827
Observations	17,077	17,077	17,077	17,077	17,077	17,077
Year and city dummies	Yes	Yes	Yes	Yes	Yes	Yes

Sources: Authors’ calculations using RAIS, Ipeadata, and Ministry of Labor-SFIT administrative data on inspections (1996–2006)
Note: this table reports coefficients from the ordinary least squares estimation of Eq. (8) in the paper, separately for the sample of cities with population lower than 10,000 persons and higher than 10,000 persons, respectively. The dependent variable differs across regressions. In all specifications, enforcement of labor regulations is measured with the number of inspections per average number of establishments in the city. Regressions include controls for several observable time-varying city characteristics (unreported) including average, median, and 75th percentile of plant size in the city; city-level GDP; share establishments in agriculture; share of establishments in industry, average, median, and 75th percentile of share of workers with secondary education in the establishment at the city-level; total city population; and total city homicide rates. ***Significance at the 1% level; **significance at the 5% level; *significance at the 10% level