Turn-over and Benefits of Unemployed Workers in Brazil A Behavioral Economics Approach

In this paper we study the roots of the turn-over in Brazil. The usual approach identifies the workers, with their speculated strategies, and the incentives given by the institucional/legal context as the principal source of the limited time horizon of the labour’s relations. We argue that this approach has poor microfundations and we propose to call the denominated behavioral economics to understand why the employment period is so short. We use the most popular categories of the behavioral economics (judgmental biases, self-control problems, etc.) to understand why the turn-over is so high. This new approach is not only theoretically relevant but can also make large contributions to the publics policies