Effect of the “Apprenticeship Law” on the Employment of Young Apprentices in Brazil

Abstract

This study analyze the effect and effectiveness of the apprenticeship quota rule in hiring young apprentices in Brazil. To this end, we used longitudinal data from the Annual Social Information List (RAIS), considering the period from 2006 to 2019, and estimated the causal effects of the Learning Law using fuzzy and sharp Regression Discontinuity Design (RDD). It was found that the percentage of employers that comply with the Apprenticeship Law ranged from 2.42% in 2006 to 26.61% in 2019. As for the causal effects of the Law in Brazil, despite the improvement observed in this period, the rate of apprentices hired by companies in the Retail and Services, and Industry and Construction sectors is still below the established quota. This result suggests the need to improve control and inspection mechanisms to increase the effectiveness of the Law in Brazil.