AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Employment Preferences of Favela Residents
AEA Papers and Proceedings
(pp. 156–161)
Abstract
We document employment preferences of workers at the margin of informality using open-ended questions and discrete choice experiments in Brazil's largest favela complex. Stated preferences emphasize pay and tangible job attributes rather than meaning or purpose. Stated complaints center on management, customers, and inflexible schedules. Workers exhibit high willingness to pay for unemployment insurance, parental leave, and learning opportunities, but none for termination notice or shorter commutes. We find larger willingness to accept to forgo amenities than willingness to pay to obtain them, consistent with preference-based sorting or endowment effects.Citation
Felix, Mayara, Beatriz Marcoje, Ieda Matavelli, and Maria Clara Rodrigues. 2026. "Employment Preferences of Favela Residents." AEA Papers and Proceedings 116: 156–161. DOI: 10.1257/pandp.20261045Additional Materials
JEL Classification
- J22 Time Allocation and Labor Supply
- J28 Safety; Job Satisfaction; Related Public Policy
- J31 Wage Level and Structure; Wage Differentials
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J46 Informal Labor Markets
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics