Download or read book Sustaining Employment and Wage Gains in Brazil written by Joana Silva and published by World Bank Publications. This book was released on 2015-08-26 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Continued social and economic progress in Brazil will depend on high employment, sustained labor productivity and income growth, and opportunities for the poor and disadvantaged to upgrade their own productivity and convert it into sustainable incomes.
Download or read book Institutions Informality and Wage Flexibility written by Mr.Marcello M. Estevão and published by International Monetary Fund. This book was released on 2012-03-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Even though institutions are created to protect workers, they may interfere with labor market functioning, raise unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the institutional changes introduced by the 1988 Constitution lowered the sensitivity of real wages to changes in labor market slack and could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states that faced higher increases in informality (i.e., illegal work contracts) following the introduction of the new Constitution tended to have smaller drops in wage responsiveness to macroeconomic conditions, thus suggesting that informality serves as a escape valve to an over-regulated environment.
Download or read book Rightsizing Brazil s Public Sector Wage Bill written by Ms.Izabela Karpowicz and published by International Monetary Fund. This book was released on 2018-10-08 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Brazil’s public-sector wage bill is comparatively high. It grows inertially and competes with other spending. Rightsizing the wage bill could stimulate administrative efficiency and bring more equity into a system where public employees earn more than private in comparable professions. Most importantly, however, a reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules. A reform should thus encompass all government levels, and all careers, and should aim to achieve a real decrease in salaries and lower employment. In the medium term, a review of the compensation structure should rationalize the multitude if wage grids, merge allowances into the base wage, and align public sector compensation to private wages in low-skilled professions.
Download or read book The Short Term Impact of COVID 19 on Labor Markets Poverty and Inequality in Brazil written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-03-05 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document the short-term impact of the COVID-19 pandemic on the Brazilian labor market focusing on employment, wages and hours worked using the nationally representative household surveys PNAD-Continua and PNAD COVID. Sectors most susceptible to the shock because they are more contact-intensive and less teleworkable, such as construction, domestic services and hospitality, suffered large job losses and reductions in hours. Given low income workers experienced the largest decline in earnings, extreme poverty and the Gini coefficient based on labor income increased by around 9.2 and 5 percentage points, respectively, due to the immediate shock. The government’s broad based, temporary Emergency Aid transfer program more than offset the labor income losses for the bottom four deciles, however, such that poverty relative to the pre-COVID baseline fell. At a cost of around 4 percent of GDP in 2020 such support is not fiscally sustainable beyond the short-term and ended in late 2020. The challenge will be to avoid a sharp increase in poverty and inequality if the labor market does not pick up sufficiently fast in 2021.
Download or read book Inequality in Brazil A Regional Perspective written by Carlos Góes and published by International Monetary Fund. This book was released on 2017-10-31 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, we document the decline in income inequality and a convergence in consumption patterns in Brazilian states in a new database constructed from micro data from the national households’ survey. We adjust the state-Gini coefficients for spatial price differences using information on households’ rental prices available in the survey. In a panel regression framework, we find that labor income growth, formalization, and schooling contributed to the decline in inequality during 2004-14, but redistributive policies, such as Bolsa Família, have also played a positive role. Going forward, it will be important to phase out untargeted subsidies, such as public spending on tertiary education, and contain growth of public sector wages, to improve budgetary efficiency and protect gains in equality.
Download or read book Trade Liberalization Employment Flows and Wage Inequality in Brazil written by Francisco H. G. Ferreira and published by . This book was released on 2007 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.
Download or read book Wages Labour and Regional Development in Brazil written by William D. Savedoff and published by . This book was released on 1995 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive text that presents an economic study of Brazil from a regional, labour and developmental viewpoint. Regional wage differentials are examined.
Download or read book Firms and the Decline in Earnings Inequality in Brazil written by Jorge Alvarez and published by International Monetary Fund. This book was released on 2017-12-14 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.
Download or read book Spatial Dynamics of Labor Markets in Brazil written by Kenneth M. Chomitz and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: There was substantial spatial variation in labor market outcomes in Brazil over the 1990's. In 2000, about one fifth of workers lived in apparently economically stagnant municipios where real wages declined but employment increased faster than the national population growth rate. More than one third lived in apparently dynamic municipios experiencing both real wage growth and faster-than-average employment growth; these areas absorbed more than half of net employment growth over the period. To elucidate this spatial variation, we estimated spatial labor supply and demand equations describing wage and employment changes of Brazilian municípios. We used Conley's spatial GMM technique to allow for instrumental variable estimation in the presence of spatially autocorrelated errors. Chief findings include: a very strong influence of initial workforce educational levels on subsequent wage growth (controlling for possibly confounding variables such as remoteness and climate); evidence of positive spillover effects of own-municipio growth onto neighbors' wage and employment levels; an exodus from farming areas; relatively elastic response of wages to an increase in labor supply; and evidence of a local multiplier effect from government transfers.
Download or read book Brazil written by Weltbank and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This report, conducted jointly by researchers in Brazil and at the World Bank, aims to address the debate on how the Brazilian labor market functions. It does so not by focusing on labor market functioning but on its outcomes. What is central are labor market outcomes, such as adequate employment growth so that job-seekers can find gainful employment, acceptable worker productivity levels that are fairly compensated, and reasonable income security for workers and their households. This report is structured as follows: Chapter 1 argues that labor laws have begun to show signs of obsolescence. Chapter 2 shows this is reflected in deteriorating outcomes. Key indicators--employment growth, labor force participation, unemployment rates, and income security--all point to worsening labor market functioning since the mid-1990s. The report then examines how changed macroeconomic circumstances call for changes in labor market institutions, regulations, and interventions. Using a characterization of the economy in which informality has a central role, Chapter 3 illustrates the correspondence between the three main macroeconomic phenomena of the 1990s--greater openness, stabilization, and fiscal adjustment--and Brazil's labor market priorities. Chapter 4 concludes that the labor market has signaled the shortage of educated workers since the 1990s, and the onus is now on the education and training systems to respond. Analysis of how Brazil's labor market functions in Chapter 5 points to evidence that indicates that Brazil's poorer workers and smaller firms are especially disadvantaged by how the labor market functions. The report identifies three sets of priorities for reform: changes in mandated non-wage benefits and minimum wage setting to price labor correctly and encourage empoloyment growth (Chapter 6), changes in severance legislation and functioning of labor courts to better align incentives and increase productivity (Chapter 7), and improvements in interventions to increase income security for all workers (Chapter 8). Chapter 9 summarizes and highlights the main policy implications. Volume 2 contains in-depth examination of the issues of interest in Brazil and the relevant international experience, on which Chapters 1 through 8 of the first volume are based.
Download or read book Changes in Employment and the Distribution of Income During the Brazilian miracle written by Samuel A. Morley and published by . This book was released on 1976 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working paper on the repercussions of rapid economic development in Brazil on wages and income distribution, with particular reference to trends from 1968 to 1973 - constitutes part of a WEP research project on income distribution and employment. References and statistical tables.
Download or read book Employment and Development under Globalization written by S. Cohn and published by Springer. This book was released on 2012-07-24 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cohn lays out a new strategy of how states can produce economic development in poor nations – by considering barber shops, beauty parlours, hotels and restaurants in Brazil. Cohn considers the case of nations with budgetary limits that cannot afford to follow the East Asian model, and finds alternative policies that create jobs and reduce poverty.
Download or read book Jobs and Growth written by Mark A. Dutz and published by World Bank Publications. This book was released on 2018-08-31 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt: Brazil approaches its 2018 election with an economy that is gradually recovering from the deepest recession in its recent economic history. However, for many Brazilians, the recovery has not yet translated into new and better jobs, or rising incomes. This book explores the drivers of future employment and income growth. Its key finding: Brazil needs to dramatically improve its performance across all industries in terms of productivity if the country is to provide better jobs for its citizens and generate lasting gains in incomes growth for all. This is particularly important as Brazil is aging rapidly and the boost the country has enjoyed thanks to its young and growing labor force in the past decades will disappear in just a few years’ time. The book recommends a change in the relationship between the state and business, from rewarding privileged incumbents to fostering competition and innovation—together with supporting workers and firms to adjust to the demands of the market. The book is addressed to all scholars and students of Brazil’s economy, especially those interested in why the country’s economic performance has not kept up with earlier achievements since the reintroduction of democracy in the mid-1980s. Its conclusions are urgent and pertinent but also optimistic. With the right policy mix, Brazil could enter the third century of its independence in 2022 well on track to join the ranks of high income countries.
Download or read book Spatial Dynamics of Labor Markets in Brazil written by and published by . This book was released on 2005 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: There was substantial spatial variation in labor market outcomes in Brazil over the 1990s. In 2000, about one-fifth of workers lived in apparently economically stagnant municipios where real wages declined but employment increased faster than the national population growth rate. More than one-third lived in apparently dynamic municipios, experiencing both real wage growth and faster-than-average employment growth. These areas absorbed more than half of net employment growth over the period. To elucidate this spatial variation, the authors estimate spatial labor supply and demand equations describing wage and employment changes of Brazilian municipios. They use Conley's spatial GMM technique to allow for instrumental variable estimation in the presence of spatially autocorrelated errors. The main findings include: (1) a very strong influence of initial workforce educational levels on subsequent wage growth (controlling for possibly confounding variables such as remoteness and climate); (2) evidence of positive spillover effects of own-municipio growth onto neighbors' wage and employment levels; (3) an exodus from farming areas; (4) relatively elastic response of wages to an increase in labor supply; and (5) evidence of a local multiplier effect from government transfers.
Download or read book Brazil written by Weltbank and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This report, conducted jointly by researchers in Brazil and at the World Bank, aims to address the debate on how the Brazilian labor market functions. It does so not by focusing on labor market functioning but on its outcomes. What is central are labor market outcomes, such as adequate employment growth so that job-seekers can find gainful employment, acceptable worker productivity levels that are fairly compensated, and reasonable income security for workers and their households. This report is structured as follows: Chapter 1 argues that labor laws have begun to show signs of obsolescence. Chapter 2 shows this is reflected in deteriorating outcomes. Key indicators--employment growth, labor force participation, unemployment rates, and income security--all point to worsening labor market functioning since the mid-1990s. The report then examines how changed macroeconomic circumstances call for changes in labor market institutions, regulations, and interventions. Using a characterization of the economy in which informality has a central role, Chapter 3 illustrates the correspondence between the three main macroeconomic phenomena of the 1990s--greater openness, stabilization, and fiscal adjustment--and Brazil's labor market priorities. Chapter 4 concludes that the labor market has signaled the shortage of educated workers since the 1990s, and the onus is now on the education and training systems to respond. Analysis of how Brazil's labor market functions in Chapter 5 points to evidence that indicates that Brazil's poorer workers and smaller firms are especially disadvantaged by how the labor market functions. The report identifies three sets of priorities for reform: changes in mandated non-wage benefits and minimum wage setting to price labor correctly and encourage empoloyment growth (Chapter 6), changes in severance legislation and functioning of labor courts to better align incentives and increase productivity (Chapter 7), and improvements in interventions to increase income security for all workers (Chapter 8). Chapter 9 summarizes and highlights the main policy implications. Volume 2 contains in-depth examination of the issues of interest in Brazil and the relevant international experience, on which Chapters 1 through 8 of the first volume are based.
Download or read book The Public private Wage Gap in Brazil written by Miguel Nathan Foguel and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent changes in public employment in Brazil generate costs to workers that leave this sector. In this study we investigate the wage loss that leaving public employees may experience if they were absorbed by the private sector. Using microdata from the Pesquisa Nacional por Amostra de Domicílios of 1995, we calculate the gross and controlled wage gaps between the two sectors. The results show that both wage gaps are relatively high, although significantly lower for the second measure. The latter indicates the presence of important differences in the composition of the labor force between the two sectors. In fact, public employees tend to be on average better educated, older and have longer tenure than the workers in the private sector. Also, the study shows that there is a significant heterogeneity within the public sector: the wage gap is higher for federal public employees, decreasing for the state and municipal levels.
Download or read book Time Series Evidence on the Employment Effect of Minimum Wages in Brazil written by Francisco Carneiro and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The impact of minimum wages on the labour market has been a recurrent issue in the theoretical and empirical literature [e.g., Cubitt and Heap (1999), Dickens et al. (1998), Waltman et al. (1998), and Dolado et al. (1996)]. There are two clear and divergent views on the normative impact of minimum wages on labour markets in developing economies. The advocate view holds that minimum wages redistribute resources in a welfare enhancing way, and as such have the potential to reduce poverty, enhance productivity, and foster economic growth. The distortionist view suggests that minimum wage interventions misallocate labour, waste resources through rent-seeking, impair adjustment to economic shocks, deter investment and reduce growth rates with the effect of depressing wages where most of the poor are found - i.e., in the urban informal sector and in the rural sector [Freeman (1994)]. In this paper, we present estimates on the impact of the minimum wage on the Brazilian labour markets using time series data for the period between 1982 to 1999. We undertake this task by means of cointegration analysis based on methods recently proposed by Inder (1995) and Johansen (1988), and tests of super-exogeneity for the minimum wage [Ericsson and Irons (1995)].
