Magno Rogério Gomes

This thesis aims to analyze the mechanisms of parental transmission of poverty through the labor market channels associated with occupations and education in Brazil. For this, the probabilities of the intergenerational occupational and educational legacies were estimated, using the databases of the National Household Sample Survey (PNAD) of 2014 and the National Household Sample Survey (PNADC) of 2019. The multinomial Logit model was applied to find the chances of parental reproduction / transmission of the occupational legacy and the Logit binomial for the educational legacy, according to the individual's socioeconomic class. Quantile wage equations with correction of sample selection bias and wage decomposition RIF - recentered influence function were also measured. We found the influence of parents in the process of choosing their children's careers, being different for different groups, such as socioeconomic class, gender, family structure and region of residence. Male children tend to follow the father's occupational legacy, while daughters tend to the mother's occupations. Individuals from rural areas are more likely to be perpetuating their parents' occupation than individuals from urban areas. The family structure also generates influence on the occupation of children, in which young people from single-parent families tend to seek occupation distinct from their parents. It also showed that, in general, the poor are more likely to follow their parents' occupational and educational legacy. The results confirm the hypothesis raised that workers who tend to follow their parents' occupational legacy have lower pay than individuals who choose other occupations, and that this fact can cause a “vicious cycle of poverty” for individuals who belong to the poor class, or a “virtuous cycle of wealth”, to those who belong to the class of non-poor. It was also found that the influence of parents in the occupation of children is stronger when they are still living with parents therefore many individuals will carry this occupational transmission throughout their lives and with a high probability of passing on the legacy for the next generations. Parental education also influences children's education level, which can generate a “vicious cycle of ignorance” when parents have low level of education and children follow the educational legacy. This unfavorable evidence is more intense for the poor group. The impact of the occupational legacy on children's wages is greater in the smallest quantile of the wage distribution and more intense for the poor class, which makes the "poverty trap" more robust, since economically disadvantaged young people tend to follow in the footsteps parents to contribute to the family income, facing a trade-off between work or study. This interrupts their training and forces them to start early in the labor market, performing secondary occupations, with lower incomes, generating a “vicious cycle of poverty”.