Determinants of young people’s participation and income in the labor market: the case of the Metropolitan Area of Recife

Abstract This article analyzes the determinants of the entrance of young people from the Metropolitan Area of Recife in the labor market, as well as the determinants of the income received by those who work. An equation was estimated using the procedure proposed by Heckman for sample selectivity, using data from PNAD (2012). The results show that being male and the head of the family, being a major, and having a higher level of schooling positively affect the young adult’s decision to enter the labor market. As for the determination of income, being male, white and having a higher level of schooling make the income be higher. Therefore, investing in young people’s education and in their access to it is an indispensable step towards reducing social disparities in the Metropolitan Area of Recife.