The Relationship between Employment Growth and Firm Profits: a Panel Data Analysis for Medium and Big Non Financial Companies in Brazil
employment growth, business income, panel data
This article examines the determinants of employment creation in medium and big firms using a panel, with data from Brazilian non financial firms from 2013 to 2021. A number of factors are considered that account for the external and internal environment of the firms, such as the firm's profitability, age and size; the industry's confidence and regional GDP growth and minimum wage. Employment is found to be positively correlated to industry's confidence and indebtedness levels, and negatively correlated with age.