ANALYZING THE RELATIONSHIP BETWEEN THE UNEMPLOYMENT RATE AND THE DEMAND TO WORK AS AN APPLICATION DRIVER IN BRAZIL

Abstract

This study's main goal is to check out how unemployment rates are linked to people looking for jobs as app-based drivers in Brazil. To do so, we used time series models, including techniques like the Vector Autoregression (VAR) model, impulse-response function, variance decomposition, and Granger causality test. This let us really dig into how these two time series interact over time. What we found is that the demand for app-based driving jobs is mostly driven by factors within the demand itself. But, the unemployment rate also plays a smaller yet still important role. At first, the impact of unemployment on folks looking for app-based driving jobs is pretty small, but it grows and levels out over time. This suggests that there's an immediate reaction to rising unemployment, followed by a gradual market adjustment.