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Brazil: Labour Market Flexibility and Productivity, with Many Poor Jobs

In: Labour Productivity and Flexibility

Author

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  • José Márcio Camargo

Abstract

Labour market behaviour is of great importance to the performance of the economy. It affects the volume of employment created, the rate of unemployment and of productivity growth, the degree of conflict between agents, the amount of investment in training and qualification, and many other important variables which, together, determine the economic performance of a country or region. Much of the behaviour of these variables is largely related to what labour market economists call ‘labour market flexibility.’ Flexibility itself is directly linked to the costliness of the adjustment to different economic conditions. If there were no adjustment cost, adaptation to external economic changes would take place instantaneously, and labour market flexibility would not be an issue. But adjustment costs are high and pervasive. So, adjustment takes time and flexibility will not be complete.

Suggested Citation

  • José Márcio Camargo, 1997. "Brazil: Labour Market Flexibility and Productivity, with Many Poor Jobs," Palgrave Macmillan Books, in: Edward J. Amadeo & Susan Horton (ed.), Labour Productivity and Flexibility, chapter 2, pages 37-64, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-25977-9_2
    DOI: 10.1007/978-1-349-25977-9_2
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    Cited by:

    1. Andre Portela Souza, 2002. "Wage Inequality Changes in Brazil: Market Forces, Macroeconomic Instability and Labor Market Institutions (1981-1997)," Vanderbilt University Department of Economics Working Papers 0215, Vanderbilt University Department of Economics.
    2. Barry Eichengreen, 1998. "Does Mercosur Need a Single Currency," NBER Working Papers 6821, National Bureau of Economic Research, Inc.
    3. Heliodoro Temprano Arroyo, 2002. "Latin America's integration processes in the light of the EU's experience with EMU," European Economy - Economic Papers 2008 - 2015 173, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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